By: Michael L. Moskowitz and Michele K. Jaspan
On December 31, 2021, Governor Kathy Hochul signed the Consumer Judgment Interest Act (S.5724A/A.6474A) to protect New Yorkers from the excessive interest rate applied to money judgments arising out of consumer debt, including credit card, medical and student debt, by lowering the post-judgment interest rate from 9 per cent to 2 percent.
The 9% rate of judgment interest, which has remained steady for decades, will remain in effect for non-consumer debt. This reduction will sharply reduce the debt load for consumers who are unable to pay their debts before a judgment is entered.
The law will take effect on April 30, 2022 and will apply to all money judgments entered against individuals arising from consumer debt, including judgments that are not yet fully paid and satisfied as of the effective date of the act.
About Weltman & Moskowitz, LLP, A New York and New Jersey Business, Bankruptcy and Creditors’ Rights Law Firm:
Founded in 1987, Weltman & Moskowitz, LLP is a highly regarded business law firm concentrating on creditors’ rights, bankruptcy, foreclosure, and business litigation. Michael L. Moskowitz, a partner, focuses his practice on business and bankruptcy litigation, as well as creditor’s rights, foreclosure, adversary proceeding litigation, corporate counseling, M&A, and transactional matters. Michael can be reached at (212) 684-7800, (201) 794-7500 or mlm@weltmosk.com. Michele K.Jaspan is an associate with the firm.Michele can be reached at mkj@weltmosk.com.
