New York Gov. Andrew Cuomo signed a credit union-backed billthat places stricter guidelines when creditors subpoenainformation.
|The law requires debt collectors to keep extensive records ofall the subpoenas for information that they issue. It also allowscollectors to subpoena third-party entities, such as credit unions,if they have a “reasonable belief” that the third party hasinformation that will help collect the debt.
|The law bans wording in subpoenas that implies they are from agovernment entity and gives the attorney general the power toimpose fines against the worst offenders.
|The Credit Union Association of New York strongly backed themeasure, 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 bylaw firms and debt collectors, according to William J. Mellin, theassociation's president.
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