What is New York Consumer Debt?
In the case of Zimmerman v. Portfolio Recovery Associates, a New York federal judge considered the circumstances under which a debt is covered by the Fair Debt Collection Practices Act.
The judge stated the FDCPA only applied to New York Consumer debt, and not to business debt or other financial obligations.
Further, the judge held the burden of proof is upon the FDCPA Plaintiff to establish the consumer orientation of the debt account. Specifically, the judge stated that only a New York Consumer Debtor can maintain a claim for damages under this powerful federal law.
Examples of New York consumer debt include a credit card account used for household purchases such as food and clothing. Other common sources of consumer debts are student loan accounts and personal medical bills.
If the account balance in collection is found to be New York consumer debt, the debtor can invoke the protections of the Fair Debt Collection Practices Act to stop unfair or deceptive collection practices.
The holding of the Federal Court in Zimmerman v. Portfolio Recovery Associates, 279 F.R.D. 174 (S.D.N.Y. 2011) predominately covers Manhattan and Bronx Counties. However, thisPortfolio Recovery Associates case precedent has been widely followed in Brooklyn, Queens, Staten Island and Long Island as well.
This Federal law has been seamlessly applied alongside New York City consumer debt collection law.
New York Consumer Debt Lawyer
If Portfolio Recovery Associates or any other collection agency has contacted you, review the information provided to determine whether the account is consumer oriented.
New York consumer debt collection notices should be promptly responded to. A debtor should dispute any portion of the debt unknown to the consumer as due and owing to the creditor.
Portfolio Recovery Associates is frequently represented in Brooklyn & Queens Civil Courts by Forster & Garbus LLP, Selip & Stylianou LLP / Cohen & Slamowitz LLP, Malen & Associates, and Kristen S. Mantyla, Esq.
Call our New York consumer defense lawyer for a free debt consultation today.