S T A T E O F N E W Y O R K
________________________________________________________________________
S. 4827--B A. 6909--B
2019-2020 Regular Sessions
S E N A T E - A S S E M B L Y
March 26, 2019
___________
IN SENATE -- Introduced by Sen. THOMAS -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Judiciary --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. WEINSTEIN, JAFFEE, COLTON, GALEF,
ABINANTI, ZEBROWSKI, O'DONNELL, FAHY, PEOPLES-STOKES, L. ROSENTHAL,
M. G. MILLER, DINOWITZ, SEAWRIGHT, GLICK, WEPRIN, MOSLEY, TAYLOR,
BARRON -- Multi-Sponsored by -- M. of A. CAHILL, COOK, CYMBROWITZ,
EPSTEIN, GOTTFRIED, McDONOUGH, PERRY -- read once and referred to the
Committee on Judiciary -- reported and referred to the Committee on
Codes -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- reported and referred to
the Committee on Rules -- Rules Committee discharged, bill amended,
ordered reprinted as amended and recommitted to the Committee on Rules
AN ACT to amend the civil practice law and rules and the judiciary law,
in relation to consumer credit transactions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "consumer credit fairness act".
§ 2. Section 105 of the civil practice law and rules is amended by
adding two new subdivisions (h-1) and (q-1) to read as follows:
(H-1) FINANCE CHARGE. THE TERM "FINANCE CHARGE" MEANS THE COST OF
CONSUMER CREDIT AS A DOLLAR AMOUNT, INCLUDES ANY CHARGE PAYABLE DIRECTLY
OR INDIRECTLY BY THE CONSUMER AND IMPOSED DIRECTLY OR INDIRECTLY BY THE
CREDITOR AS AN INCIDENT TO OR A CONDITION OF THE EXTENSION OF CREDIT,
AND DOES NOT INCLUDE ANY CHARGE OF A TYPE PAYABLE IN A COMPARABLE CASH
TRANSACTION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00927-09-9
S. 4827--B 2 A. 6909--B
(Q-1) ORIGINAL CREDITOR. THE TERM "ORIGINAL CREDITOR" MEANS THE ENTITY
THAT OWNED A CONSUMER CREDIT ACCOUNT AT THE DATE OF DEFAULT GIVING RISE
TO A CAUSE OF ACTION.
§ 3. Subdivision 2 of section 213 of the civil practice law and rules,
as amended by chapter 709 of the laws of 1988, is amended to read as
follows:
2. an action upon a contractual obligation or liability, express or
implied, except as provided in section two hundred thirteen-a OR TWO
HUNDRED FOURTEEN-H of this article or article 2 of the uniform commer-
cial code or article 36-B of the general business law;
§ 4. The civil practice law and rules is amended by adding a new
section 214-h to read as follows:
§ 214-H. CERTAIN ACTIONS ARISING OUT OF CONSUMER CREDIT TRANSACTIONS
TO BE COMMENCED WITHIN THREE YEARS. AN ACTION ARISING OUT OF A CONSUMER
CREDIT TRANSACTION WHERE A PURCHASER, BORROWER OR DEBTOR IS A DEFENDANT
MUST BE COMMENCED WITHIN THREE YEARS, EXCEPT AS PROVIDED IN SECTION TWO
HUNDRED THIRTEEN-A OF THIS ARTICLE OR ARTICLE 2 OF THE UNIFORM COMMER-
CIAL CODE OR ARTICLE 36-B OF THE GENERAL BUSINESS LAW. WHEN THE PERIOD
WITHIN WHICH AN ACTION MAY BE COMMENCED UNDER THIS SECTION HAS EXPIRED,
THE RIGHT TO COLLECT CONSUMER CREDIT DEBT IS EXTINGUISHED AS WELL AS THE
REMEDY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHEN THE APPLICABLE
LIMITATIONS PERIOD EXPIRES, ANY SUBSEQUENT PAYMENT TOWARD, WRITTEN OR
ORAL AFFIRMATION OF OR OTHER ACTIVITY ON THE DEBT DOES NOT REVIVE OR
EXTEND THE LIMITATIONS PERIOD.
FOR PURPOSES OF THIS SECTION, "THE RIGHT TO COLLECT CONSUMER CREDIT
DEBT" SHALL MEAN ANY ATTEMPTS BY THE CREDITOR, THIRD PARTY PURCHASER, OR
OTHER AUTHORIZED THIRD PARTY TO COLLECT SUCH DEBT INCLUDING, BUT NOT
LIMITED TO, CALLS, MAIL OR OTHER ATTEMPTS TO COLLECT.
§ 5. The civil practice law and rules is amended by adding a new
section 306-d to read as follows:
§ 306-D. ADDITIONAL MAILING OF NOTICE IN AN ACTION ARISING OUT OF A
CONSUMER CREDIT TRANSACTION. (A) AT THE TIME OF FILING WITH THE CLERK OF
THE PROOF OF SERVICE OF THE SUMMONS AND COMPLAINT IN AN ACTION ARISING
OUT OF A CONSUMER CREDIT TRANSACTION, THE PLAINTIFF SHALL SUBMIT TO THE
CLERK A STAMPED UNSEALED ENVELOPE ADDRESSED TO THE DEFENDANT TOGETHER
WITH A WRITTEN NOTICE IN CLEAR TYPE OF NO LESS THAN TWELVE-POINT IN
SIZE, IN BOTH ENGLISH AND SPANISH, AND CONTAINING THE FOLLOWING
LANGUAGE:
ADDITIONAL NOTICE OF LAWSUIT
(NAME OF COURT)
(COUNTY)
(STREET ADDRESS, ROOM NUMBER)
(CITY, STATE, ZIP CODE)
(NAME OF DEFENDANT)
(ADDRESS OF DEFENDANT)
PLAINTIFF:__________________________________
DEFENDANT:__________________________________
NAME OF ORIGINAL CREDITOR, UNLESS SAME:______________________________
INDEX NUMBER:_______________________________
ATTENTION: A LAWSUIT HAS BEEN FILED AGAINST YOU CLAIMING THAT YOU OWE
MONEY FOR AN UNPAID CONSUMER DEBT.
YOU MAY WISH TO CONTACT AN ATTORNEY.
S. 4827--B 3 A. 6909--B
YOU SHOULD RESPOND TO THE LAWSUIT AS SOON AS POSSIBLE BY FILING AN
"ANSWER" WHICH MAY BE DONE AT THE COURT CLERK'S OFFICE LISTED ABOVE.
IF YOU DO NOT RESPOND TO THE LAWSUIT, THE COURT MAY ENTER A MONEY
JUDGMENT AGAINST YOU. ONCE ENTERED, A JUDGMENT IS GOOD AND CAN BE USED
AGAINST YOU FOR TWENTY YEARS, AND YOUR PERSONAL PROPERTY AND MONEY,
INCLUDING A PORTION OF YOUR PAYCHECK AND/OR BANK ACCOUNT, MAY BE TAKEN
FROM YOU. ALSO, A JUDGMENT MAY AFFECT YOUR CREDIT SCORE AND CAN AFFECT
YOUR ABILITY TO RENT A HOME, FIND A JOB, OR TAKE OUT A LOAN.
YOU CANNOT BE ARRESTED OR SENT TO JAIL FOR OWING A DEBT.
ADDITIONAL INFORMATION CAN BE FOUND AT THE COURT SYSTEM WEBSITE AT:
WWW.NYCOURTS.GOV
SOURCES OF INFORMATION AND ASSISTANCE:
THE COURT ENCOURAGES YOU TO INFORM YOURSELF ABOUT YOUR OPTIONS AS A
DEFENDANT IN THIS LAWSUIT. IN ADDITION TO SEEKING ASSISTANCE FROM A
PRIVATE ATTORNEY OR LEGAL AID OFFICE, THERE ARE FREE LEGAL ASSISTANCE
PROGRAMS THAT YOU CAN USE ONLINE TO HELP YOU REPRESENT YOURSELF IN THIS
LAWSUIT.
FOR FURTHER INFORMATION, OR TO LOCATE AN ENTITY OR PROGRAM NEAR YOU, YOU
MAY VISIT THE NEW YORK STATE UNIFIED COURT SYSTEM'S "RESOURCES FOR
UNREPRESENTED LITIGANTS" WEBSITE AT:
HTTP://WW2.NYCOURTS.GOV/RULES/CCR/RESOURCES.SHTML
(B) THE FACE OF THE ENVELOPE SHALL BE ADDRESSED TO THE DEFENDANT AT
THE ADDRESS AT WHICH PROCESS WAS SERVED, AND SHALL CONTAIN THE DEFEND-
ANT'S NAME, ADDRESS (INCLUDING APARTMENT NUMBER) AND ZIP CODE. THE FACE
OF THE ENVELOPE ALSO SHALL STATE THE APPROPRIATE CLERK'S OFFICE AS ITS
RETURN ADDRESS.
(C) THE CLERK PROMPTLY SHALL MAIL TO THE DEFENDANT THE ENVELOPE
CONTAINING THE ADDITIONAL NOTICE SET FORTH IN SUBDIVISION (A) OF THIS
SECTION. NO DEFAULT JUDGMENT BASED ON THE DEFENDANT'S FAILURE TO ANSWER
SHALL BE ENTERED UNLESS THERE HAS BEEN COMPLIANCE WITH THIS SECTION, AND
AT LEAST TWENTY DAYS HAVE ELAPSED FROM THE DATE OF MAILING BY THE CLERK.
NO DEFAULT JUDGMENT BASED ON THE DEFENDANT'S FAILURE TO ANSWER SHALL BE
ENTERED IF THE ADDITIONAL NOTICE IS RETURNED TO THE COURT AS UNDELIVERA-
BLE. RECEIPT OF THE ADDITIONAL NOTICE BY THE DEFENDANT DOES NOT CONFER
JURISDICTION ON THE COURT IN THE ABSENCE OF PROPER SERVICE OF PROCESS.
(D) THE CHIEF ADMINISTRATIVE JUDGE SHALL ISSUE A SPANISH TRANSLATION
OF THE NOTICE IN SUBDIVISION (A) OF THIS SECTION.
§ 6. Subdivision (a) of section 3012 of the civil practice law and
rules is amended to read as follows:
(a) Service of pleadings. The complaint may be served with the
summons, EXCEPT THAT IN AN ACTION ARISING OUT OF A CONSUMER CREDIT TRAN-
SACTION, THE COMPLAINT SHALL BE SERVED WITH THE SUMMONS. A subsequent
pleading asserting new or additional claims for relief shall be served
upon a party who has not appeared in the manner provided for service of
a summons. In any other case, a pleading shall be served in the manner
provided for service of papers generally. Service of an answer or reply
shall be made within twenty days after service of the pleading to which
it responds.
§ 7. Rule 3016 of the civil practice law and rules is amended by
adding a new subdivision (j) to read as follows:
(J) CONSUMER CREDIT TRANSACTIONS. IN AN ACTION ARISING OUT OF A
CONSUMER CREDIT TRANSACTION WHERE A PURCHASER, BORROWER OR DEBTOR IS A
DEFENDANT, THE CONTRACT OR OTHER WRITTEN INSTRUMENT ON WHICH THE ACTION
IS BASED SHALL BE ATTACHED TO THE COMPLAINT AND THE FOLLOWING INFORMA-
TION SHALL BE SET FORTH IN THE COMPLAINT:
(1) THE NAME OF THE ORIGINAL CREDITOR;
S. 4827--B 4 A. 6909--B
(2) THE LAST FOUR DIGITS OF THE ACCOUNT NUMBER AT THE DATE OF THE
DEFAULT GIVING RISE TO A CAUSE OF ACTION;
(3) THE DATE AND AMOUNT OF THE LAST PAYMENT OR, IF NO PAYMENT WAS
MADE, A STATEMENT THAT THE PURCHASER, BORROWER OR DEBTOR MADE NO PAYMENT
ON THE ACCOUNT;
(4) IF THE COMPLAINT CONTAINS A CAUSE OF ACTION BASED ON AN ACCOUNT
STATED, THE DATE THAT THE FINAL STATEMENT OF ACCOUNT WAS MAILED TO THE
DEFENDANT;
(5) (A) EXCEPT AS PROVIDED IN SUBPARAGRAPH (B) OF THIS PARAGRAPH, AN
ITEMIZATION OF THE AMOUNT SOUGHT, BY (I) PRINCIPAL; (II) FINANCE CHARGE
OR CHARGES; (III) FEES IMPOSED BY THE ORIGINAL CREDITOR; (IV) COLLECTION
COSTS; (V) ATTORNEY'S FEES; (VI) INTEREST; AND (VII) ANY OTHER FEES AND
CHARGES.
(B) IF THE ACCOUNT WAS A REVOLVING CREDIT ACCOUNT, AN ITEMIZATION OF
THE AMOUNT SOUGHT, BY (I) THE BALANCE AT THE DATE OF DEFAULT; (II)
INTEREST, FEES AND CHARGES IMPOSED AFTER THE DATE OF DEFAULT; (III)
CREDITS OR PAYMENTS MADE BY OR ON BEHALF OF THE PURCHASER, BORROWER OR
DEBTOR AFTER THE DATE OF DEFAULT; AND (IV) IF APPLICABLE, THE DATE OF
CHARGE OFF AND BALANCE AT CHARGE OFF, PROVIDED THAT ANY AMOUNT SOUGHT
FOR CHARGES AND COSTS AFTER CHARGE OFF ARE ITEMIZED AS PROVIDED FOR IN
SUBPARAGRAPH (A) OF THIS PARAGRAPH;
(6) (A) WHETHER THE PLAINTIFF IS THE ORIGINAL CREDITOR.
(B) IF THE PLAINTIFF IS NOT THE ORIGINAL CREDITOR, THE COMPLAINT SHALL
ALSO STATE (I) THE DATE ON WHICH THE DEBT WAS SOLD OR ASSIGNED TO THE
PLAINTIFF; (II) THE NAME OF EACH PREVIOUS OWNER OF THE ACCOUNT FROM THE
ORIGINAL CREDITOR TO THE PLAINTIFF AND THE DATE ON WHICH THE DEBT WAS
ASSIGNED TO THAT OWNER BY THE ORIGINAL CREDITOR OR SUBSEQUENT OWNER; AND
(III) THE AMOUNT DUE AT THE TIME OF THE SALE OR ASSIGNMENT OF THE DEBT
BY THE ORIGINAL CREDITOR; AND
(7) ANY MATTERS REQUIRED TO BE STATED WITH PARTICULARITY PURSUANT TO
RULE 3015 OF THIS ARTICLE.
§ 8. Subdivision (e) of rule 3211 of the civil practice law and rules,
as amended by chapter 616 of the laws of 2005, is amended to read as
follows:
(e) Number, time and waiver of objections; motion to plead over. At
any time before service of the responsive pleading is required, a party
may move on one or more of the grounds set forth in subdivision (a) OF
THIS RULE, and no more than one such motion shall be permitted. Any
objection or defense based upon a ground set forth in paragraphs one,
three, four, five and six of subdivision (a) OF THIS RULE is waived
unless raised either by such motion or in the responsive pleading. A
motion based upon a ground specified in paragraph two, seven or ten of
subdivision (a) OF THIS RULE may be made at any subsequent time or in a
later pleading, if one is permitted; an objection that the summons and
complaint, summons with notice, or notice of petition and petition was
not properly served is waived if, having raised such an objection in a
pleading, the objecting party does not move for judgment on that ground
within sixty days after serving the pleading, unless the court extends
the time upon the ground of undue hardship. The foregoing sentence shall
not apply in any proceeding TO COLLECT A DEBT ARISING OUT OF A CONSUMER
CREDIT TRANSACTION WHERE A CONSUMER IS A DEFENDANT OR under subdivision
one or two of section seven hundred eleven of the real property actions
and proceedings law. The papers in opposition to a motion based on
improper service shall contain a copy of the proof of service, whether
or not previously filed. An objection based upon a ground specified in
paragraph eight or nine of subdivision (a) OF THIS RULE is waived if a
S. 4827--B 5 A. 6909--B
party moves on any of the grounds set forth in subdivision (a) OF THIS
RULE without raising such objection or if, having made no objection
under subdivision (a) OF THIS RULE, he or she does not raise such
objection in the responsive pleading WHICH, IN ANY ACTION TO COLLECT A
DEBT ARISING OUT OF A CONSUMER CREDIT TRANSACTION WHERE A CONSUMER IS A
DEFENDANT, INCLUDES ANY AMENDED RESPONSIVE PLEADING.
§ 9. Rule 3212 of the civil practice law and rules is amended by
adding a new subdivision (j) to read as follows:
(J) ADDITIONAL NOTICE IN ANY ACTION TO COLLECT A DEBT ARISING OUT OF
A CONSUMER CREDIT TRANSACTION WHERE A CONSUMER IS A DEFENDANT.
1. AT THE TIME OF SERVICE OF A NOTICE OF MOTION ANY PART OF WHICH
REQUESTS SUMMARY JUDGMENT IN WHOLE OR IN PART, WHERE THE MOVING PARTY
IS A PLAINTIFF AND THE RESPONDENT IS A CONSUMER DEFENDANT IN AN ACTION
TO COLLECT A DEBT ARISING OUT OF A CONSUMER CREDIT TRANSACTION, AND
WHERE THE CONSUMER DEFENDANT AGAINST WHOM SUMMARY JUDGMENT IS SOUGHT IS
NOT REPRESENTED BY AN ATTORNEY, THE PLAINTIFF SHALL SERVE, TOGETHER WITH
THE NOTICE OF MOTION, THE FOLLOWING ADDITIONAL NOTICE IN ENGLISH AND
SPANISH TO BE PRINTED IN CLEAR TYPE NO LESS THAN TWELVE-POINT IN SIZE:
IMPORTANT NOTICE TO PRO SE DEFENDANTS
(NAME OF COURT)
(STREET ADDRESS, ROOM NUMBER)
(CITY, STATE, ZIP CODE)
PLAINTIFF:
DEFENDANT:
INDEX NUMBER:
MOTION RETURN DATE AND TIME:
ATTENTION CPLR RULE 3212 MOTION FOR SUMMARY JUDGMENT
THIS NOTICE IS TO ADVISE YOU THAT THE PLAINTIFF IN THIS CASE HAS FILED A
MOTION FOR SUMMARY JUDGMENT AGAINST YOU PURSUANT TO CPLR RULE 3212,
WHICH MEANS THAT SUMMARY JUDGMENT WILL BE GRANTED IF THE COURT FINDS
THAT THERE IS NO GENUINE ISSUE AS TO ANY MATERIAL FACT AND THAT THE
PLAINTIFF IS ENTITLED TO JUDGMENT AS A MATTER OF LAW.
FAILURE TO RESPOND TO THIS MOTION FOR SUMMARY JUDGMENT MAY RESULT IN A
MONEY JUDGMENT BEING ENTERED AGAINST YOU IN FAVOR OF THE PLAINTIFF.
ONCE ENTERED, A JUDGMENT IS GOOD AND CAN BE USED AGAINST YOU FOR TWENTY
YEARS, AND YOUR PERSONAL PROPERTY AND MONEY, INCLUDING A PORTION OF YOUR
PAYCHECK AND/OR BANK ACCOUNT, MAY BE TAKEN FROM YOU. ALSO, A JUDGMENT
MAY AFFECT YOUR CREDIT SCORE AND CAN AFFECT YOUR ABILITY TO RENT A
HOME, FIND A JOB, OR TAKE OUT A LOAN. YOU CANNOT BE ARRESTED OR SENT TO
JAIL FOR OWING A DEBT.
OPPOSING THIS MOTION FOR SUMMARY JUDGMENT:
IF YOU WISH TO OPPOSE THE PLAINTIFF'S REQUEST FOR JUDGMENT, YOU SHOULD
SET FORTH IN A WRITTEN RESPONSE THE REASONS THAT THE PLAINTIFF HAS NOT
SHOWN THAT IT IS ENTITLED TO JUDGMENT AS A MATTER OF LAW, AND ANY FACTS
THAT YOU BELIEVE SHOW THAT YOU ARE NOT LIABLE TO THE PLAINTIFF OR HAVE A
DEFENSE. YOU SHOULD SUBMIT AFFIDAVITS OR EXHIBITS SUPPORTING ANY FACTS
THAT YOU ASSERT SHOW THAT YOU ARE NOT LIABLE OR HAVE A DEFENSE. EACH
AFFIDAVIT SHOULD SET FORTH RELEVANT FACTS AND SHOW THAT THE PERSON
S. 4827--B 6 A. 6909--B
SUBMITTING THE AFFIDAVIT HAS PERSONAL KNOWLEDGE OF THOSE FACTS. IF YOU
RELY ON EXHIBITS, YOU SHOULD ATTACH COPIES OF THEM TO AN AFFIDAVIT THAT
EXPLAINS WHAT THEY ARE AND HOW THEY SHOW THAT YOU ARE NOT LIABLE OR HAVE
A DEFENSE. YOU SHOULD BRING YOUR OPPOSITION PAPERS TO COURT ON THE
COURT DATE AND MAIL A COPY TO THE PLAINTIFF'S ATTORNEY IN ADVANCE OF THE
COURT DATE. YOU SHOULD ALSO ATTEND COURT ON THE RETURN DATE.
SOURCES OF INFORMATION AND ASSISTANCE:
THE COURT ENCOURAGES YOU TO INFORM YOURSELF ABOUT YOUR OPTIONS AS A
DEFENDANT IN THIS LAWSUIT. IN ADDITION TO SEEKING ASSISTANCE FROM A
PRIVATE ATTORNEY OR LEGAL AID OFFICE, THERE MAY BE FREE LEGAL ASSIST-
ANCE PROGRAMS THAT YOU MAY CONTACT FOR HELP IN REPRESENTING YOURSELF IN
THIS LAWSUIT.
FOR FURTHER INFORMATION, OR TO LOCATE AN ENTITY OR PROGRAM NEAR YOU, YOU
MAY VISIT THE NEW YORK STATE UNIFIED COURT SYSTEM'S "RESOURCES FOR
UNREPRESENTED LITIGANTS" WEBSITE AT:
HTTP://WW2.NYCOURTS.GOV/RULES/CCR/RESOURCES.SHTML
2. THE PLAINTIFF SEEKING SUMMARY JUDGMENT SHALL FILE PROOF OF SERVICE
OF THE ADDITIONAL NOTICE WITH THE COURT, AND NO MOTION FOR WHICH THIS
ADDITIONAL NOTICE IS REQUIRED SHALL BE GRANTED UNLESS SUCH PROOF OF
SERVICE HAS BEEN FILED.
3. THE CHIEF ADMINISTRATIVE JUDGE SHALL ISSUE A SPANISH TRANSLATION OF
THE NOTICE IN PARAGRAPH ONE OF THIS SUBDIVISION.
§ 10. Section 3213 of the civil practice law and rules, as amended by
chapter 210 of the laws of 1969, is amended to read as follows:
§ 3213. Motion for summary judgment in lieu of complaint. When an
action is based upon an instrument for the payment of money only or upon
any judgment, the plaintiff may serve with the summons a notice of
motion for summary judgment and the supporting papers in lieu of a
complaint. The summons served with such motion papers shall require the
defendant to submit answering papers on the motion within the time
provided in the notice of motion. The minimum time such motion shall be
noticed to be heard shall be as provided by subdivision (a) of rule 320
for making an appearance, depending upon the method of service. If the
plaintiff sets the hearing date of the motion later than the minimum
time therefor, he may require the defendant to serve a copy of his
answering papers upon him within such extended period of time, not
exceeding ten days, prior to such hearing date. No default judgment may
be entered pursuant to subdivision (a) of section 3215 prior to the
hearing date of the motion. If the motion is denied, the moving and
answering papers shall be deemed the complaint and answer, respectively,
unless the court orders otherwise. THE ADDITIONAL NOTICE REQUIRED BY
SUBDIVISION (J) OF RULE 3212 SHALL BE APPLICABLE TO A MOTION MADE PURSU-
ANT TO THIS SECTION IN ANY ACTION TO COLLECT A DEBT ARISING OUT OF A
CONSUMER CREDIT TRANSACTION WHERE A CONSUMER IS A DEFENDANT.
§ 11. Subdivision (f) of section 3215 of the civil practice law and
rules, as amended by chapter 453 of the laws of 2006, is amended and a
new subdivision (j) is added to read as follows:
(f) Proof. On any application for judgment by default, the applicant
shall file proof of service of the summons and the complaint, or a
summons and notice served pursuant to subdivision (b) of rule 305 or
subdivision (a) of rule 316 of this chapter, and proof of the facts
constituting the claim, the default and the amount due by affidavit made
by the party, or where the state of New York is the plaintiff, by affi-
S. 4827--B 7 A. 6909--B
davit made by an attorney from the office of the attorney general who
has or obtains knowledge of such facts through review of state records
or otherwise. Where a verified complaint has been served, it may be used
as the affidavit of the facts constituting the claim and the amount due;
in such case, an affidavit as to the default shall be made by the party
or the party's attorney. IN AN ACTION ARISING OUT OF A CONSUMER CREDIT
TRANSACTION, IF THE PLAINTIFF IS NOT THE ORIGINAL CREDITOR, THE APPLI-
CANT SHALL INCLUDE: (1) AN AFFIDAVIT BY THE ORIGINAL CREDITOR OF THE
FACTS CONSTITUTING THE DEBT, THE DEFAULT IN PAYMENT, THE SALE OR ASSIGN-
MENT OF THE DEBT, AND THE AMOUNT DUE AT THE TIME OF SALE OR ASSIGNMENT;
(2) FOR EACH SUBSEQUENT ASSIGNMENT OR SALE OF THE DEBT TO ANOTHER ENTI-
TY, AN AFFIDAVIT OF SALE OF THE DEBT BY THE DEBT SELLER, COMPLETED BY
THE SELLER OR ASSIGNOR; AND (3) AN AFFIDAVIT OF A WITNESS OF THE PLAIN-
TIFF, WHICH INCLUDES A CHAIN OF TITLE OF THE DEBT, COMPLETED BY THE
PLAINTIFF OR PLAINTIFF'S WITNESS. THE CHIEF ADMINISTRATIVE JUDGE SHALL
ISSUE FORM AFFIDAVITS TO SATISFY THE REQUIREMENTS OF THIS SUBDIVISION
FOR CONSUMER CREDIT TRANSACTIONS. When jurisdiction is based on an
attachment of property, the affidavit must state that an order of
attachment granted in the action has been levied on the property of the
defendant, describe the property and state its value. Proof of mailing
the notice required by subdivision (g) of this section, where applica-
ble, shall also be filed.
(J) AFFIDAVIT. A REQUEST FOR A DEFAULT JUDGMENT ENTERED BY THE CLERK,
MUST BE ACCOMPANIED BY AN AFFIDAVIT BY THE PLAINTIFF OR PLAINTIFF'S
ATTORNEY STATING THAT AFTER REASONABLE INQUIRY, HE OR SHE HAS REASON TO
BELIEVE THAT THE STATUTE OF LIMITATIONS HAS NOT EXPIRED.
§ 12. The civil practice law and rules is amended by adding a new
section 7516 to read as follows:
§ 7516. CONFIRMATION OF AN AWARD BASED ON A CONSUMER CREDIT TRANS-
ACTION. IN ANY PROCEEDING UNDER SECTION 7510 OF THIS ARTICLE TO CONFIRM
AN AWARD BASED ON A CONSUMER CREDIT TRANSACTION, THE PARTY SEEKING TO
CONFIRM THE AWARD SHALL PLEAD THE ACTUAL TERMS AND CONDITIONS OF THE
AGREEMENT TO ARBITRATE. THE PARTY SHALL ATTACH TO ITS PETITION (A) THE
AGREEMENT TO ARBITRATE; (B) THE DEMAND FOR ARBITRATION OR NOTICE OF
INTENTION TO ARBITRATE, WITH PROOF OF SERVICE; AND (C) THE ARBITRATION
AWARD, WITH PROOF OF SERVICE. IF THE AWARD DOES NOT CONTAIN A STATEMENT
OF THE CLAIMS SUBMITTED FOR ARBITRATION, OF THE CLAIMS RULED UPON BY THE
ARBITRATOR, AND OF THE CALCULATION OF FIGURES USED BY THE ARBITRATOR IN
ARRIVING AT THE AWARD, THEN THE PETITION SHALL CONTAIN SUCH A STATEMENT.
THE COURT SHALL NOT GRANT CONFIRMATION OF AN AWARD BASED ON A CONSUMER
CREDIT TRANSACTION UNLESS THE PARTY SEEKING TO CONFIRM THE AWARD HAS
COMPLIED WITH THIS SECTION.
§ 13. Subdivision 2 of section 212 of the judiciary law is amended by
adding a new paragraph (aa) to read as follows:
(AA) NOT LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY, MAKE AVAILABLE
SPANISH TRANSLATIONS OF THE ADDITIONAL NOTICES IN CONSUMER CREDIT TRANS-
ACTION ACTIONS AND PROCEEDINGS REQUIRED BY SECTION 306-D OF THE CIVIL
PRACTICE LAW AND RULES AND SUBDIVISION (I) OF RULE 3212 OF THE CIVIL
PRACTICE LAW AND RULES, AND MAKE AVAILABLE FORM AFFIDAVITS REQUIRED FOR
A MOTION FOR DEFAULT JUDGMENT IN A CONSUMER CREDIT TRANSACTION ACTION OR
PROCEEDING REQUIRED BY SUBDIVISION (F) OF SECTION 3215 OF THE CIVIL
PRACTICE LAW AND RULES.
§ 14. This act shall take effect immediately; provided, however, that
sections two, three, five, six, seven, eight, nine, ten, eleven and
twelve shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to actions and
S. 4827--B 8 A. 6909--B
proceedings commenced on or after such date; and provided, further, that
section four of this act shall take effect on the one hundred fiftieth
day after this act shall have become a law.