The new legislation focuses on liens and garnishments of consumers’ medical debt.
11/23/2022 12:30 P.M.
1.5 minute read
New York Gov. Kathy Hochul has signed a bill that eliminates liens and garnishment of medical debt.
“No one should face the threat of losing their home or falling into further debt after seeking medical care,” Hochul said in a press release. “I’m proud to sign legislation today that will end this harmful and predatory collection practice to help protect New Yorkers from these unfair penalties. With medical debt a burden for far too many, this is an important step to address this crucial issue.”
The New York State Collectors Association has continued to advocate for industry priorities, including a more flexible approach instead of placing a one-size-fits-all restriction on all consumers despite an individual’s unique situation.
The main components of the new law, effective immediately, include:
- “No property lien shall be entered or enforced against a debtor’s primary residence in an action arising from a medical debt and brought by a hospital licensed under article twenty-eight of the public health law or a health care professional authorized under title eight of the education law.”
- “No amount shall be imposed in judgments arising from a medical debt action brought by a hospital licensed under article twenty-eight of the public health law or a health care professional authorized under title eight of the education law.”
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