NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10182A Revised 7/8/26
SPONSOR: Taylor TITLE OF BILL:
An act to amend the civil practice law and rules, the New York city
civil court act, the judiciary law, the uniform city court act, the
uniform district court act and the uniform justice court act, in
relation to redefining consumer credit transaction to consumer debt
PURPOSE OR GENERAL IDEA OF BILL:
To create uniformity for all types of consumer debt subject to
collection actions in civil court,
SUMMARY OF PROVISIONS:
Section one of this bill amends Civil Practice Law and Rules (CPLR)
Section 105 to add a new definition of "consumer debt"which is refer-
enced throughout the amendments to CPLR, the NYC Civil Court Act, Judi-
ciary Law, the Uniform City Court Act, the Uniform District Court Act,
and the Uniform Justice Court Act that this bill makes. While the
existing definition of "consumer credit transaction" in CPLR § 105
refers only to borrowing where advance credit has been extended to the
borrower, i.e. credit card debt, this new definition will also include
instances where a consumer is alleged to owe debt but credit was not
necessarily granted by the borrower in advance, i.e. medical debt,
rental arrears, tuition debt, or other non-credit obligations, This
definition is modeled on longstanding definitions contained in the Fair
Debt Collection Practices Act and the U.S. Bankruptcy Code and contains
a carveout for mortgages and rental arrears that are already being
pursued in a summary proceeding to recover possession of real property
under Article 7 of the Real Property Actions and Proceeding Law (RPAPL).
Section two of this bill amends Section 301 of the New York City Civil
Court Act (NYCCCA), which provides that consumer credit actions must be
initiated in a county where the defendant lives or where the credit
transaction took place. This section would extend this protection to all
consumer debt actions, as newly defined in sections one and five of the
bill, to reduce default judgments caused by lawsuits filed in distant
counties and bring all consumer debt cases under the same venue
protections.
Section three of this bill amends subdivision (d) of Section 401 of the
NYCCCA, which requires that consumer credit case summons be printed in
both English and Spanish. This section would expand this requirement to
all consumer debt actions, as newly defined in sections one and five of
the bill, to reduce the likelihood of a non-English speaker inadvertent-
ly ignoring a summons because they don't understand what it says.
Section four of this bill amends subdivisions (b-1) and (n) of Section
1911 of the NYCCCA, which requires plaintiffs to pay an additional $95
filing fee for a consumer credit action. This section would expand this
requirement to all consumer debt actions as newly defined in sections
one and five of the bill.
Section five of this bill is a conforming edit to add a new subdivision
(h) to Section 2101 of the NYCCCA. This section would add the new defi-
nition of "consumer debt" to the NYCCCA, harmonizing the NYCCCA with the
CPLR.
Section six of this bill amends Section 214-i of the CPLR, which sets a
three-year statute of limitations for any consumer credit cases. This
section also prohibits the revival of time-barred debt by later
payments, acknowledgements, or other activity on the debt. This section
of the bill would add the new definition of "consumer debt" to CPLR §
214-i.
Section seven of the bill amends subdivision (a) of Rule 305 of the
CPLR, which requires all consumer debt summonses to clearly state that
the action involves a consumer credit transaction as well as the county
where the defendant lives and where the transaction took place. This
helps courts immediately identify a case as a consumer credit action and
confirm the proper venue from the face of the summons. This section of
the bill would add the new definition of "consumer debt" to CPLR Rule
305.
Section eight of this bill amends subdivision (a) of Section 306-d of
the CPLR, which requires defendants to receive an additional notice
explaining the nature of the lawsuit in English and Spanish, improving
the chances that they receive and understand the lawsuit before a
default judgment is entered against them. This section extends this
protection to all actions arisen out of consumer debt as newly defined
in the bill.
Section nine of the bill amends subdivision (f) of Section 503 of the
CPLR, which overrides general CPLR venue rules to require a defendant to
be sued in the county where they live or where the transaction occurred.
This section of the bill would add the new definition of "consumer debt"
to CPLR § 503, ensuring the same venue protections apply uniformly to
all types of consumer debt cases.
Section ten of this bill amends subdivision (a) of Section 513 of the
CPLR, which requires clerks to reject summonses filed in the wrong coun-
ty in consumer credit cases. This section of the bill would add the new
definition of "consumer debt" to CPLR § 513.
Section 11 of this bill amends subdivision (b) of Section 601 of the
CPLR, which limits joinders, or the process of combining multiple claims
into a single civil case, against defendants in consumer credit cases.
CPLR § 601(b) currently stipulates that plaintiffs can join no more than
five cases from separate individual transactions against the same
defendant when the plaintiff is using the same attorney. This section of
the bill adds the new definition of "consumer debt" to CPLR § 601(b),
making cases more manageable for unrepresented defendants and preventing
abusive claim stacking.
Section 12 of the bill amends subdivision (a) of Section 3012 of the
CPLR, which requires that a summons be accompanied by an actual
complaint in consumer credit cases. This section of the bill adds the
new definition of "consumer debt" to CPLR § 3012(a), ensuring immediate
disclosure of claims for all consumer debts,
Section 13 of the bill amends subdivision (j) of Section 3016 of the
CPLR, which requires plaintiffs to attach detailed information to a
complaint, including the name of the original creditor, the last four
digits of the account number, the date and amount of the defendant's
last payment, an itemization of the amount sought by the plaintiff,
including principal, interest, other fees charged by the creditor,
collection costs, and attorneys fees, the account balance, and, if the
plaintiff is not the original creditor, the date on which the debt was
assigned to the plaintiff and the name of all previous creditors. This
section of the bill adds the new definition of "consumer debt" to CPLR §
3012(j), applying these pleading rules to all consumer debt cases, while
also allowing a plaintiff to include other unique identifying informa-
tion about the consumer debt where no traditional credit card account
number exists.
Section 14 of the bill makes a confirming edit to add the new definition
of "consumer debt" to subdivision (e) of Rule 3211 of the CPLR, which
modifies the normal waiver rules that apply in consumer credit cases
when a defendant claims improper service. Normally, the formal defense
of improper service is waived if a defendant doesn't move to dismiss the
case on these grounds within 60 days. In consumer credit cases, however,
this waiver does not apply, meaning that this defense can be raised by
the consumer defendant at a later point.
Section 15 of this bill makes a conforming edit to add the new defi-
nition of "consumer debt" to subdivision (j) of Rule 3212 of the CPLR,
which requires unrepresented defendants in consumer credit cases to
receive an additional explanatory notice in Spanish and English when the
plaintiff moves for summary judgment. This provision helps ensure that
unrepresented consumers understand what a summary judgment motion is and
what they must do to oppose it, reducing the risk of a default judgment
where the defendant fails to respond to the motion or appear in court.
Section 16 of this bill makes a conforming edit to add the new defi-
nition of "consumer debt" to Section 3213 of the CPLR, which requires
plaintiffs to include the additional explanatory notice described above
to unrepresented defendants in consumer credit cases when a plaintiff
initiates a case with a motion for summary judgment rather than a full
complaint.
Section 17 of this bill makes a conforming edit to add the new defi-
nition of "consumer debt" to subdivisions (f) and (j) of Section 3215 of
the CPLR, which requires additional proof on the part of the plaintiff
when they make an application for default judgment against a debtor
defendant. The proof must include an affidavit from the original credi-
tor stating the facts and amount due as well as the sale and assignment
of debt to future creditors, and affidavits from each subsequent credi-
tor to which the debt was assigned. Plaintiffs are also required to
state that they believe the statute of limitations for the claim has not
expired when they go to file for a default judgment.
Section 18 of the bill amends subdivision (b) of Section 5004 of the
CPLR to more closely align the existing definition of "consumer debt" in
CPLR § 5004 with the other definition of "consumer debt" created earlier
in the bill. This amendment clarifies that consumer debt can either be
contingent (i.e. cosigning a loan, where the debt only becomes due if
the primary borrower defaults) or absolute (i.e. a mortgage, where the
debt is predetermined regardless of future events). CPLR § 5004 governs
interest rates on judgments arising out of consumer debt cases. While
the interest rate for debts arising out of civil cases is generally nine
percent, CPLR sets a lower two percent interest rate for consumer debt
cases.
Section 19 of the bill makes a conforming edit to add the new definition
of "consumer debt" to section 7516 of the CPLR, which requires any party
seeking to confirm an arbitration award to attach the actual terms and
conditions of the arbitration agreement, the demand for arbitration with
proof of service, and the award amount with proof of service. The peti-
tion must also include the claims submitted to and ruled upon by the
arbitrator as well as the calculation of figures the arbitrator used to
arrive at the award amount.
Section 20 of the bill makes a conforming edit to add the new definition
of "consumer debt" to paragraph (aa) of subdivision 2 of
Section 212 of the Judiciary Law, which requires the Office of Court
Administration (OCA) to provide Spanish translations of consumer credit
notices required by the CPLR and form affidavits needed for default
judgments in consumer credit cases.
Section 21 of the bill makes a conforming edit to add the new definition
of "consumer debt" to paragraph 1-a of subdivision (a) of
Section 1911 of the Uniform City Court Act, which requires plaintiffs to
pay an additional $95 filing fee in an action or proceeding for consumer
debt collection in city courts outside of NYC.
Section 22 of the bill makes a conforming edit to add the new definition
of "consumer debt" to paragraph 2-a of subdivision (a) of
Section 1911 of the Uniform District Court Act. This section is similar
to section 21 of the bill but for district courts across the state.
Section 23 of the bill adds a new paragraph a-1 to paragraph 1 of subdi-
vision (a) of Section 1911 of the Uniform Justice Court Act to create
this same $95 filing fee for consumer credit cases in the state's local
courts.
Section 24 of the bill provides that all court rules and forms be
updated within six months of the effective date of the bill in order to
reference "consumer debt" and not "consumer credit transaction." This
will ensure that court rules and forms stay consistent with statutory
changes and that litigants and clerks are not operating with outdated
terminology that could cause confusion or misapplication of the law.
Section 25 sets the effective date.
JUSTIFICATION:
New York law treats the collection of consumer debts differently, creat-
ing confusion not only for consumers, but also courts and creditors. For
example, New Yorkers holding debts arising from consumer credit trans-
actions have protections under the Consumer Credit Fairness Act of 2021
that are unavailable to debtors holding other forms of common consumer
debts.
This legislation reduces confusion and enhances consumer protections by
adding a definition of "consumer debt" that subsumes consumer credit
transaction, and includes other types of debts such as medical debt,
rent arrears, or tuition debt, As a result, more types of consumer obli-
gations (including things like medical debt, rent arrears and other
non-credit obligations incurred for personal, family, or household
purposes) are covered by venue rules, pleading requirements, service
safeguards, statutes of limitation, default judgment rules, and notice
requirements.
The bill contains narrow exemptions in CPLR 105(f-1) for obligations
secured by real property and for obligations to pay money when they are
sought within a summary proceeding to recover possession of real proper-
ty under Article 7 of the Real Property Actions and Proceedings Law, The
Article 7 exemption is intended to avoid altering eviction proceedings
brought under Article 7 of the RPAPL. It does not eliminate protections
for consumers who are sued for rent arrears in plenary debt collection
actions brought outside of Article 7 proceedings, including in civil
courts, supreme courts, justice courts, district courts, and city
courts.
These exemptions also do not affect CPLR 5004, which was amended by the
Fair Consumer Judgment Interest Rate Act in 2021 to lower the judgment
interest rate on consumer debt from nine percent to two percent. CPLR
5004(b) contains a separate definition of "consumer debt" that applies
for purposes of that section and controls over the general definition of
"consumer debt" in CPLR 105(f-1) when determining whether a judgment is
subject to the two percent consumer-debt judgment interest rate. Accord-
ingly, the exemptions in CPLR 105(f-1) should not be read to narrow the
scope of CPLR 5004. Consumers sued by hospitals, nursing homes, land-
lords, colleges, and other creditors face the same challenges and obsta-
cles that exist in cases seeking to collect credit card debt; they
should be given the same protections. Furthermore, clear and uniform
standards help promote consistency across courts and provide predict-
ability to businesses operating in New York.
PRIOR LEGISLATIVE HISTORY:
2025: S5546B - Referred to Judiciary
2023: S4750 - Referred to Judiciary
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after which it shall
have become a law.
STATE OF NEW YORK
________________________________________________________________________
10182--A
IN ASSEMBLY
February 12, 2026
___________
Introduced by M. of A. TAYLOR, STECK, SHIMSKY, KELLES, SEAWRIGHT -- read
once and referred to the Committee on Judiciary -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the civil practice law and rules, the New York city
civil court act, the judiciary law, the uniform city court act, the
uniform district court act and the uniform justice court act, in
relation to redefining consumer credit transaction to consumer debt
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 105 of the civil practice law and rules is amended
2 by adding a new subdivision (f-1) to read as follows:
3 (f-1) Consumer debt. The term "consumer debt" means any obligation or
4 alleged obligation, whether contingent or absolute, of any natural
5 person to pay money arising out of a transaction in which the money,
6 property, insurance or services which are the subject of the transaction
7 are primarily for personal, family or household purposes, whether or not
8 such obligation has been reduced to judgment, including, but not limited
9 to, a consumer credit transaction, as defined in subdivision (f) of this
10 section and medical debt, as referenced in section two hundred thir-
11 teen-d of this chapter. "Consumer debt" shall not include obligation or
12 alleged obligation to pay money secured by real property, nor shall it
13 include an obligation or alleged obligation to pay money when sought
14 within a summary proceeding to recover possession of real property under
15 article seven of the real property actions and proceedings law.
16 § 2. Subdivision (a) of section 301 of the New York city civil court
17 act, as amended by chapter 238 of the laws of 1973, is amended to read
18 as follows:
19 (a) in an action arising out of a [consumer credit transaction]
20 consumer debt where a purchaser, borrower, or a debtor is a defendant,
21 if a defendant resides in the city of New York, or if such transaction
22 took place therein, in the county in which a defendant resides at the
23 commencement thereof or in the county in which such transaction took
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00514-10-6
A. 10182--A 2
1 place, and in all other cases, in the county in which one of the parties
2 resides at the commencement thereof; or
3 § 3. Subdivision (d) of section 401 of the New York city civil court
4 act, as added by chapter 302 of the laws of 1970, is amended to read as
5 follows:
6 (d) The summons served in an action arising from a [consumer credit
7 transaction] consumer debt must be printed legibly in both Spanish and
8 English.
9 § 4. Subdivisions (b-1) and (n) of section 1911 of the New York city
10 civil court act, as added by section 3 of part K of chapter 56 of the
11 laws of 2010, are amended to read as follows:
12 (b-1) Upon filing the first paper in an action or proceeding arising
13 out of a [consumer credit transaction] consumer debt as defined in
14 subdivision [(f)] (f-1) of section one hundred five of the civil prac-
15 tice law and rules, an additional ninety-five dollars.
16 (n) Upon the filing of a judgment by a plaintiff on or after September
17 first, two thousand ten in an action or proceeding arising out of a
18 [consumer credit transaction] consumer debt as defined in subdivision
19 [(f)] (f-1) of section one hundred five of the civil practice law and
20 rules, ninety-five dollars, provided such action or proceeding was
21 commenced prior to such date and no additional fee was paid therein
22 pursuant to subdivision (b-1) of this section.
23 § 5. Section 2101 of the New York city civil court act is amended by
24 adding a new subdivision (h) to read as follows:
25 (h) "Consumer debt" means any obligation or alleged obligation, wheth-
26 er contingent or absolute, of any natural person to pay money arising
27 out of a transaction in which the money, property, insurance or services
28 which are the subject of the transaction are primarily for personal,
29 family or household purposes, whether or not such obligation has been
30 reduced to judgment, including but not limited to, a consumer credit
31 transaction, as defined in subdivision (g) of this section. "Consumer
32 debt" shall not include an obligation or alleged obligation to pay money
33 secured by real property, nor shall it include an obligation or alleged
34 obligation to pay money when sought within a summary proceeding to
35 recover possession of real property under article seven of the real
36 property actions and proceedings law.
37 § 6. Section 214-i of the civil practice law and rules, as added by
38 chapter 593 of the laws of 2021, is amended to read as follows:
39 § 214-i. Certain actions arising out of [consumer credit transactions]
40 consumer debt to be commenced within three years. An action arising out
41 of a [consumer credit transaction] consumer debt where a purchaser,
42 borrower or debtor is a defendant must be commenced within three years,
43 except as provided in section two hundred thirteen-a of this article or
44 article 2 of the uniform commercial code or article 36-B of the general
45 business law. Notwithstanding any other provision of law, when the
46 applicable limitations period expires, any subsequent payment toward,
47 written or oral affirmation of or other activity on the debt does not
48 revive or extend the limitations period.
49 § 7. Subdivision (a) of rule 305 of the civil practice law and rules,
50 as amended by chapter 39 of the laws of 1996, is amended to read as
51 follows:
52 (a) Summons; supplemental summons. A summons shall specify the basis
53 of the venue designated and if based upon the residence of the plaintiff
54 it shall specify the plaintiff's address, and also shall bear the index
55 number assigned and the date of filing with the clerk of the court. A
56 third-party summons shall also specify the date of filing of the third-
A. 10182--A 3
1 party summons with the clerk of the court. The summons in an action
2 arising out of a [consumer credit transaction] consumer debt shall prom-
3 inently display at the top of the summons the words ["consumer credit
4 transaction"] "consumer debt" and, where a purchaser, borrower or debtor
5 is a defendant, shall specify the county of residence of a defendant, if
6 one resides within the state, and the county where the [consumer credit
7 transaction] transaction from which the consumer debt arose took place,
8 if it is within the state. Where, upon order of the court or by stipu-
9 lation of all parties or as of right pursuant to section 1003, a new
10 party is joined in the action and the joinder is not made upon the new
11 party's motion, a supplemental summons specifying the pleading which the
12 new party must answer shall be filed with the clerk of the court and
13 served upon such party.
14 § 8. The section heading and the opening paragraph of subdivision (a)
15 of section 306-d of the civil practice law and rules, as added by chap-
16 ter 593 of the laws of 2021, are amended to read as follows:
17 Additional mailing of notice in [an action arising out of a consumer
18 credit transaction] a consumer debt action.
19 At the time of filing with the clerk of the proof of service of the
20 summons and complaint in an action arising out of a [consumer credit
21 transaction] consumer debt, the plaintiff shall submit to the clerk a
22 stamped, unsealed envelope addressed to the defendant together with a
23 written notice in clear type of no less than twelve-point in size, in
24 both English and Spanish, and containing the following language:
25 § 9. Subdivision (f) of section 503 of the civil practice law and
26 rules, as added by chapter 238 of the laws of 1973, is amended to read
27 as follows:
28 (f) [Consumer credit transaction] Consumer debt. In an action arising
29 out of a [consumer credit transaction] consumer debt where a purchaser,
30 borrower or debtor is a defendant, the place of trial shall be the resi-
31 dence of a defendant, if one resides within the state or the county
32 where such transaction took place, if it is within the state, or, in
33 other cases, as set forth in subdivision (a).
34 § 10. The section heading and subdivision (a) of section 513 of the
35 civil practice law and rules, as added by chapter 238 of the laws of
36 1973, are amended to read as follows:
37 Misplacement of venue in [consumer credit transactions] consumer debt
38 actions. (a) In an action arising out of a [consumer credit transaction]
39 consumer debt, the clerk shall not accept a summons for filing when it
40 appears upon its face that the proper venue is a county other than the
41 county where such summons is offered for filing.
42 § 11. Subdivision (b) of section 601 of the civil practice law and
43 rules, as added by chapter 602 of the laws of 1996, is amended to read
44 as follows:
45 (b) Two or more plaintiffs may join no more than five claims in any
46 one action or proceeding against the same defendant arising out of sepa-
47 rate [consumer credit transactions] consumer debts, provided that the
48 plaintiffs are represented by the same attorney.
49 § 12. Subdivision (a) of section 3012 of the civil practice law and
50 rules, as amended by chapter 593 of the laws of 2021, is amended to read
51 as follows:
52 (a) Service of pleadings. The complaint may be served with the
53 summons, except that in an action arising out of a [consumer credit
54 transaction] consumer debt, the complaint shall be served with the
55 summons. A subsequent pleading asserting new or additional claims for
56 relief shall be served upon a party who has not appeared in the manner
A. 10182--A 4
1 provided for service of a summons. In any other case, a pleading shall
2 be served in the manner provided for service of papers generally.
3 Service of an answer or reply shall be made within twenty days after
4 service of the pleading to which it responds.
5 § 13. Subdivision (j) of rule 3016 of the civil practice law and
6 rules, as added by chapter 593 of the laws of 2021, is amended to read
7 as follows:
8 (j) [Consumer credit transactions] Consumer debts. In an action aris-
9 ing out of a [consumer credit transaction] consumer debt where a
10 purchaser, borrower or debtor is a defendant, the contract or other
11 written instrument establishing the consumer debt on which the action is
12 based shall be attached to the complaint, however, for the purposes of
13 this section, if the account was a revolving credit account, the charge-
14 off statement may be attached to the complaint instead of the contract
15 or other written instrument[, and]. For all actions arising out of a
16 consumer debt, the following information shall be set forth in the
17 complaint:
18 (1) The name of the original creditor;
19 (2) The last four digits of the account number printed on the most
20 recent [monthly] statement recording a purchase or service transaction,
21 last payment or balance transfer, or other unique identifying informa-
22 tion associated with the consumer debt where no account number exists;
23 (3) The date [and], amount, and recipient of the last payment or, if
24 no payment was made, a statement that the purchaser, borrower or debtor
25 made no payment on the account;
26 (4) If the complaint contains a cause of action based on an account
27 stated, the date on or about which the final statement of account was
28 provided to the defendant;
29 (5) (A) Except as provided in subparagraph (B) of this paragraph, an
30 itemization of the amount sought, by (i) principal; (ii) finance charge
31 or charges; (iii) fees imposed by the original creditor; (iv) collection
32 costs; (v) attorney's fees; (vi) interest; and (vii) any other fees and
33 charges[.];
34 (B) If the account was a revolving credit account, an itemization of
35 the amount sought, by: (i) the total amount of the debt due as of
36 charge-off; (ii) the total amount of interest accrued since charge-off;
37 (iii) the total amount of non-interest charges or fees accrued since
38 charge-off; and (iv) the total amount of payments and/or credits made on
39 the debt since charge-off;
40 (6) The account balance printed on the most recent [monthly] statement
41 recording a purchase or service transaction, last payment or balance
42 transfer;
43 (7) (A) Whether the plaintiff is the original creditor[.];
44 (B) If the plaintiff is not the original creditor, the complaint shall
45 also state (i) the date on which the debt was sold or assigned to the
46 plaintiff; (ii) the name of each previous owner of the account from the
47 original creditor to the plaintiff and the date on which the debt was
48 assigned to that owner by the original creditor or subsequent owner; and
49 (iii) the amount due at the time of the sale or assignment of the debt
50 by the original creditor; and
51 (8) Any matters required to be stated with particularity pursuant to
52 rule 3015 of this article.
53 § 14. Subdivision (e) of rule 3211 of the civil practice law and
54 rules, as amended by chapter 593 of the laws of 2021, is amended to read
55 as follows:
A. 10182--A 5
1 (e) Number, time and waiver of objections; motion to plead over. At
2 any time before service of the responsive pleading is required, a party
3 may move on one or more of the grounds set forth in subdivision (a) of
4 this rule, and no more than one such motion shall be permitted. Any
5 objection or defense based upon a ground set forth in paragraphs one,
6 three, four, five and six of subdivision (a) of this rule is waived
7 unless raised either by such motion or in the responsive pleading. A
8 motion based upon a ground specified in paragraph two, seven or ten of
9 subdivision (a) of this rule may be made at any subsequent time or in a
10 later pleading, if one is permitted; an objection that the summons and
11 complaint, summons with notice, or notice of petition and petition was
12 not properly served is waived if, having raised such an objection in a
13 pleading, the objecting party does not move for judgment on that ground
14 within sixty days after serving the pleading, unless the court extends
15 the time upon the ground of undue hardship. The foregoing sentence shall
16 not apply in any proceeding to collect a debt arising out of a [consumer
17 credit transaction] consumer debt where a consumer is a defendant or
18 under subdivision one or two of section seven hundred eleven of the real
19 property actions and proceedings law. The papers in opposition to a
20 motion based on improper service shall contain a copy of the proof of
21 service, whether or not previously filed. An objection based upon a
22 ground specified in paragraph eight or nine of subdivision (a) of this
23 rule is waived if a party moves on any of the grounds set forth in
24 subdivision (a) of this rule without raising such objection or if,
25 having made no objection under subdivision (a) of this rule, [he or she]
26 such party does not raise such objection in the responsive pleading
27 which, in any action to collect a debt arising out of a [consumer credit
28 transaction] consumer debt where a consumer is a defendant, includes any
29 amended responsive pleading.
30 § 15. The opening paragraph, the opening paragraph of paragraph 1 and
31 paragraph 3 of subdivision (j) of rule 3212 of the civil practice law
32 and rules, as added by chapter 593 of the laws of 2021, are amended to
33 read as follows:
34 Additional notice in any action to collect a [debt arising out of a
35 consumer credit transaction] consumer debt where a consumer is a defend-
36 ant.
37 At the time of service of a notice of motion any part of which
38 requests summary judgment in whole or in part, where the moving party is
39 a plaintiff and the respondent is a consumer defendant in [an] a consum-
40 er debt action [to collect a debt arising out of a consumer credit tran-
41 saction], and where the consumer defendant against whom summary judgment
42 is sought is not represented by an attorney, the plaintiff shall submit
43 to the clerk a stamped, unsealed envelope addressed to the defendant
44 together with the following additional notice in English and Spanish to
45 be printed in clear type no less than twelve-point in size:
46 3. The chief administrative judge shall issue a Spanish translation of
47 the notice in paragraph one of this subdivision and shall maintain and
48 publish the URL address for the web page containing consumer [credit]
49 debt resources for unrepresented litigants.
50 § 16. Section 3213 of the civil practice law and rules, as amended by
51 chapter 593 of the laws of 2021, is amended to read as follows:
52 § 3213. Motion for summary judgment in lieu of complaint. When an
53 action is based upon an instrument for the payment of money only or upon
54 any judgment, the plaintiff may serve with the summons a notice of
55 motion for summary judgment and the supporting papers in lieu of a
56 complaint. The summons served with such motion papers shall require the
A. 10182--A 6
1 defendant to submit answering papers on the motion within the time
2 provided in the notice of motion. The minimum time such motion shall be
3 noticed to be heard shall be as provided by subdivision (a) of rule 320
4 for making an appearance, depending upon the method of service. If the
5 plaintiff sets the hearing date of the motion later than the minimum
6 time therefor, [he] such plaintiff may require the defendant to serve a
7 copy of [his] their answering papers upon [him] such plaintiff within
8 such extended period of time, not exceeding ten days, prior to such
9 hearing date. No default judgment may be entered pursuant to subdivision
10 (a) of section 3215 prior to the hearing date of the motion. If the
11 motion is denied, the moving and answering papers shall be deemed the
12 complaint and answer, respectively, unless the court orders otherwise.
13 The additional notice required by subdivision (j) of rule 3212 shall be
14 applicable to a motion made pursuant to this section in any action to
15 collect a [debt arising out of a consumer credit transaction] consumer
16 debt where a consumer is a defendant.
17 § 17. Subdivisions (f) and (j) of section 3215 of the civil practice
18 law and rules, as amended by section 1 of subpart A of part Y of chapter
19 57 of the laws of 2023, are amended to read as follows:
20 (f) Proof. On any application for judgment by default, the applicant
21 shall file proof of service of the summons and the complaint, or a
22 summons and notice served pursuant to subdivision (b) of rule 305 or
23 subdivision (a) of rule 316 of this chapter, and proof of the facts
24 constituting the claim, the default and the amount due, including, if
25 applicable, a statement that the interest rate for consumer debt pursu-
26 ant to section five thousand four of this chapter applies, by affidavit
27 made by the party, or where the state of New York is the plaintiff, by
28 affidavit made by an attorney from the office of the attorney general
29 who has or obtains knowledge of such facts through review of state
30 records or otherwise. Where a verified complaint has been served, it may
31 be used as the affidavit of the facts constituting the claim and the
32 amount due; in such case, an affidavit as to the default shall be made
33 by the party or the party's attorney. In an action arising out of a
34 [consumer credit transaction] consumer debt, if the plaintiff is not the
35 original creditor, the applicant shall include: (1) an affidavit by the
36 original creditor of the facts constituting the debt, the default in
37 payment, the sale or assignment of the debt, and the amount due at the
38 time of sale or assignment; (2) for each subsequent assignment or sale
39 of the debt to another entity, an affidavit of sale of the debt by the
40 debt seller, completed by the seller or assignor; and (3) an affidavit
41 of a witness of the plaintiff, which includes a chain of title of the
42 debt, completed by the plaintiff or plaintiff's witness. In an action
43 arising from medical debt, if the plaintiff is not a hospital licensed
44 under article twenty-eight of the public health law or a health care
45 professional authorized under title eight of the education law, the
46 applicant shall include: (1) an affidavit by the hospital or health care
47 professional of the facts constituting the medical debt, the default in
48 payment, the sale or assignment of the medical debt, and the amount due
49 at the time of sale or assignment; (2) for each subsequent assignment or
50 sale of the medical debt to another entity, an affidavit of sale of the
51 medical debt by the debt seller, completed by the seller or assignor;
52 and (3) an affidavit of a witness of the plaintiff, which includes a
53 chain of title of the medical debt, completed by the plaintiff or
54 plaintiff's witness. The chief administrative judge shall issue form
55 affidavits to satisfy the requirements of this subdivision for [consumer
56 credit transactions] consumer debt and actions arising from medical
A. 10182--A 7
1 debt. When jurisdiction is based on an attachment of property, the affi-
2 davit must state that an order of attachment granted in the action has
3 been levied on the property of the defendant, describe the property and
4 state its value. Proof of mailing the notice required by subdivision (g)
5 of this section, where applicable, shall also be filed.
6 (j) Affidavit. A request for a default judgment entered by the clerk,
7 must be accompanied by an affidavit by the plaintiff or plaintiff's
8 attorney stating that after reasonable inquiry, [he or she] such plain-
9 tiff or plaintiff's attorney has reason to believe that the statute of
10 limitations has not expired. The chief administrative judge shall issue
11 form affidavits to satisfy the requirements of this subdivision for
12 [consumer credit transactions] consumer debts and actions arising from
13 medical debt.
14 § 18. Subdivision (b) of section 5004 of the civil practice law and
15 rules, as amended by chapter 831 of the laws of 2021, is amended to read
16 as follows:
17 (b) For the purpose of this section "consumer debt" means any obli-
18 gation or alleged obligation, whether contingent or absolute, of any
19 natural person to pay money arising out of a transaction in which the
20 money, property, insurance or services which are the subject of the
21 transaction are primarily for personal, family or household purposes,
22 whether or not such obligation has been reduced to judgment, including,
23 but not limited to, a consumer credit transaction, as defined in subdi-
24 vision (f) of section one hundred five of this chapter and medical debt
25 as referenced in section two hundred thirteen-d of this chapter.
26 § 19. Section 7516 of the civil practice law and rules, as added by
27 chapter 593 of the laws of 2021, is amended to read as follows:
28 § 7516. Confirmation of an award based on a [consumer credit trans-
29 action] consumer debt. In any proceeding under section 7510 of this
30 article to confirm an award based on a [consumer credit transaction]
31 consumer debt, the party seeking to confirm the award shall plead the
32 actual terms and conditions of the agreement to arbitrate. The party
33 shall attach to its petition (a) the agreement to arbitrate; (b) the
34 demand for arbitration or notice of intention to arbitrate, with proof
35 of service; and (c) the arbitration award, with proof of service. If the
36 award does not contain a statement of the claims submitted for arbi-
37 tration, of the claims ruled upon by the arbitrator, and of the calcu-
38 lation of figures used by the arbitrator in arriving at the award, then
39 the petition shall contain such a statement. The court shall not grant
40 confirmation of an award based on a [consumer credit transaction]
41 consumer debt unless the party seeking to confirm the award has complied
42 with this section.
43 § 20. Paragraph (aa) of subdivision 2 of section 212 of the judiciary
44 law, as added by chapter 593 of the laws of 2021, is amended to read as
45 follows:
46 (aa) Not later than January first, two thousand twenty-two, make
47 available Spanish translations of the additional notices in [consumer
48 credit transaction] consumer debt actions and proceedings required by
49 section 306-d and subdivision (j) of rule 3212 of the civil practice law
50 and rules, and make available form affidavits required for a motion for
51 default judgment in a [consumer credit transaction] consumer debt action
52 or proceeding required by subdivision (f) of section 3215 of the civil
53 practice law and rules.
54 § 21. Paragraph 1-a of subdivision (a) of section 1911 of the uniform
55 city court act, as added by section 2 of part K of chapter 56 of the
56 laws of 2010, is amended to read as follows:
A. 10182--A 8
1 (1-a) Upon filing the first paper in an action or proceeding arising
2 out of a [consumer credit transaction] consumer debt as defined in
3 subdivision [(f)] (f-1) of section one hundred five of the civil prac-
4 tice law and rules, an [addition] additional ninety-five dollars.
5 § 22. Paragraph 2-a of subdivision (a) of section 1911 of the uniform
6 district court act, as added by section 1 of part K of chapter 56 of the
7 laws of 2010, is amended to read as follows:
8 (2-a) Upon filing the first paper in an action or proceeding arising
9 out of a [consumer credit transaction] consumer debt as defined in
10 subdivision [(f)] (f-1) of section one hundred five of the civil prac-
11 tice law and rules, an additional ninety-five dollars.
12 § 23. Paragraph 1 of subdivision (a) of section 1911 of the uniform
13 justice court act is amended by adding a new subparagraph a-1 to read as
14 follows:
15 a-1. Upon filing the first paper in an action or proceeding arising
16 out of a consumer debt as defined in subdivision (f-1) of section one
17 hundred five of the civil practice law and rules, an additional ninety-
18 five dollars.
19 § 24. Within six months of the effective date of this act, all court
20 rules and forms relating to actions arising from consumer credit trans-
21 actions, as defined in subdivision (f) of section 105 of the civil prac-
22 tice law and rules, in New York state shall be revised to amend the term
23 "consumer credit transaction" to "consumer debt", as that term is now
24 defined in subdivision (f-1) of section 105 of the civil practice law
25 and rules. The chief administrator of the courts shall oversee this
26 process, which shall include, but not be limited to, amendments to New
27 York Court Rules sections 202.5 (e)(4), 202.5-bb(a)(2)(vi), 202.27-a(1),
28 202.27-a(b), 202.27-a(e), 202.27-b, 208.4(b)(4), 208.6(d), 208.14-a(1),
29 208.14-a(b), 208.14-a(e), 210.14-b, 210.4(b)(4), 212.14-a(1),
30 212.14-(a)(b), 212.14-a(e), 212.14-b, 212.4(b)(4), 214.12(4).
31 § 25. This act shall take effect on the ninetieth day after it shall
32 have become a law. Effective immediately, the addition, amendment and/or
33 repeal of any rule or regulation necessary for the implementation of
34 this act on its effective date are authorized to be made and completed
35 on or before such effective date.
