New York Gov. Andrew Cuomo signed a credit union-backed bill that places stricter guidelines when creditors subpoena information.
The law requires debt collectors to keep extensive records of all the subpoenas for information that they issue. It also allows collectors to subpoena third-party entities, such as credit unions, if they have a “reasonable belief” that the third party has information that will help collect the debt.
The law bans wording in subpoenas that implies they are from a government entity and gives the attorney general the power to impose fines against the worst offenders.
The Credit Union Association of New York strongly backed the measure, which was sponsored by Assemblyman Joseph Lentol (D-Metropolitan) and Senator Stephen Saland (R-Catskill/Hudson) because many credit unions had been “inundated,” with subpoenas by law firms and debt collectors, according to William J. Mellin, the association’s president.