Beware of debt collection companies or companies working with debt collection companies that offer you a credit card if you repay, in part or in full, an old debt that may have expired. Companies may use terms like “Fresh Start Program” or “Balance Transfer Program” to describe offers to transfer your old debt to a new credit card account after you make a certain number of payments. If you accept the credit card offer and start making payments, the debt collection agency’s time limit (statute of limitations) for suing you to collect this debt will restart. The company offering the credit card may not tell you that this is a consequence of getting the credit card.
Payday loans are illegal in New York. A payday loan is a high-interest loan borrowed against your next paycheck. To apply for a payday loan, you need to have a checking account and proof of income. In New York State, most payday loans are handled by phone or online. If a collection agency tries to collect on a payday loan, visit nyc.gov/dca or contact 311 to file a complaint with DCA.
By: Undisputed Legal/Court Service Department
False Claims and Harassment Are Illegal
A debt collection agency may not make false statements, including
- Claim that it represents a government agency, such as a marshal, sheriff, or District Attorney Office
- Threaten, that you will be arrested
- Threaten that it will report you to immigration authorities
- Claim that you have committed a crime
- Threaten that it will have you evicted take or garnish your wages, take the money from your bank account, or take your personal belonging without first obtaining a judgement against you in court.