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  • Writer's pictureSubhan Tariq, Esq


It's crucial for borrowers to understand their legal rights because, in some cases, both state and federal laws give borrowers protection from having to pay back particular debts. This is one of the main reasons for this. Consider sending your hard-earned money to a creditor to whom you have no legal obligation to repay. Understandably, the thought may make you feel a little queasy. Understanding your legal rights will help you avoid situations like this one in the future.

New Yorkers, for example, who understand their rights under the Consumer Credit Fairness Act (CCFA) may be able to avoid paying debts on past-due accounts. Understanding this single-state law can thus potentially save you thousands of dollars.

What Exactly Is The Consumer Credit Fairness Act?

In November 2021, the Consumer Credit Fairness Act (CCFA) was ratified, and it became operative in the following spring. It aims to hold creditors to reasonable timeliness and transparency standards, while also ensuring that borrowers aren't overburdened by long-overdue debts, failures to notify borrowers of their obligations, excessive late fees, and excessive interest charges.

The CCFA requires those serving as "clerks of the court" to mail borrowers a notice if lenders file consumer credit action lawsuits against them. This notice must include information about the debt in question as well as proof that the lender who has filed the lawsuit is legally owed the amount demanded. This provision of the law ensures that borrowers are not taken aback when they learn that a judgment has been entered against them in a lawsuit about which they were unaware.

The CCFA also reduces the state's statute of limitations for pursuing consumer debt. Previously, creditors could sue a borrower for nonpayment of their obligations six years after the borrower's last debt payment on an account. That timeframe has now been reduced to three years. This CCFA provision serves two functions. For starters, it requires creditors to take legal action as soon as a borrower stops making payments. Second, it helps to ensure that borrowers are not overburdened by excessive late fees and interest charges.

The CCFA also serves as a defense against "zombie debt." That is, the law takes steps to prevent debt buyers from suing to collect balances that have already expired. As a result, consumers are less likely to be bothered by an invalid lawsuit that violates the CCFA's statute of limitations, as explained above.

For more information on the CCFA, reach out to one of our attorneys at Tariq Law, PC at



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