Starting on April 30, 2022, the annual interest rate on money judgments arising out of consumer debt will be reduced from 9% to 2%.
The new law amends New York Civil Practice Laws and Rules §5004.
It's important to note that if the previous 9% interest rate applied to an ongoing judgment, the creditor has up to sixty (60) days from 4/30/2022 to issue and amend the interest rate to 2%. Any money collected in excess of the judgment amount shall be returned to the debtor. However, if the money was collected prior to 4/30/2022 to satisfy the debt in in full or in part, then the debtor has no right to a refund or remedy.
