This is great for our industry, because it means that all the creditors who are not large financial institutions, will have fewer hoops to jump through.
commack, ny (PRWEB) October 06, 2014
Timothy Wan, Managing Partner of Smith Carroad Levy & Wan and President of the Commercial Lawyers Conference, has recently scored a win for small and medium sized business owners.
In May 2014, the Chief Administrative Judge (CAJ) of the Courts of the State of New York announced upcoming reforms for consumer credit debt collection, and credit matter law reforms, and called for comment from anyone in the legal community. Mr. Wan, an attorney specializing in debt collection argued that the entire existing regulation was unclear as to who the term “consumer credit matters” would apply to.
After considering his comments, the CAJ sent out new regulations which will go into effect on October 1. As per Mr. Wan’s request, extreme clarifications were included in the regulations. Specifically, the regulations go into detail about what a consumer credit transaction does not include, in particular, it states that the concept of “consumer debt transactions” only specifically refer to credit cards, while excluding a number of other categories of debt. According to Wan, “This is great for our industry, because it means that all the creditors who are not large financial institutions, will have fewer hoops to jump through. Under the original proposal, it would have been impossible to enter a judgment and enforce a duly owed debt. With this clarification, medical providers, and those that hold student loans, auto loans, and retail installment contracts will no longer be tied up by the intricacies of laws that were never meant to apply to them.”