NY State Attorney General James extends debt collection relief
People and businesses named in more than 165,000 debt collection matters that were being pursued by the New York State Office of the Attorney General either have automatically received or can apply to receive an additional 30-day reprieve from collection action.
On March 17, an order was issued as part of the state’s COVID-19 response to suspend the collection of certain debts by the Attorney General’s Office. Today, that order was extended for another 30 days.
The office collects certain debts owed to the state via settlements and lawsuits brought on behalf of the the people of the state and state agencies. Among those facing collection action who are benefiting from today’s extension of the debt collection suspension are:
Ӣ patients who owe medical debts to the five state hospitals and the five state veteransӪ homes;
Ӣ students who owe student debt due to State University of New York campuses; and
Ӣ individuals, sole-proprietors, small-business owners and certain homeowners who owe debt relating to oil spill cleanup and removal costs, property damage, and breach of contract, as well as other fees owed to state agencies.
There is a blanket suspension of collection action for medical and student loan debt but people and businesses facing collection action for other debts to the state have to apply for relief. There is an application on the OAG’s website that can be filled-out and filed online. The online address is: ag.ny.gov/covid-19-debt-suspension-application.
The Attorney Genera’s Office said it will reassess the needs of state residents for another possible extension at the appropriate time.
“This crisis is wreaking havoc on our state”™s working people and I will do everything in my power to protect their wallets,” Attorney General Letitia James said.
“New Yorkers need to hold on to every dollar they have and focus on keeping their families safe and healthy. Millions across the country, including more than a million right here in New York, have filed for unemployment and are struggling to get by. While we battle this public health crisis, the last thing my office will do is add undue stress or saddle our neighbors with unnecessary financial burden.”