Tips for New Yorkers to Protect Themselves from Predatory Debt Collectors

New York State officials have released a guide to help New Yorkers use the state’s Exempt Income Protection Act (EIPA) to protect their money from debt collectors:

The EIPA is a state law that prevents debt collectors from draining consumers’ bank accounts, leaving them unable to cover the costs of basic needs. The law automatically protects a certain amount of money in people’s bank accounts

from being frozen or seized, and also protects vital government benefits like Social Security, disability benefits, and veteran’s benefits.

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The EIPA automatically exempts a certain amount of money in people’s bank accounts from being frozen or seized. This protected amount is based on the minimum wage and is $3,960 for those in New York City, Long Island, or Westchester, and $3,720 for those anywhere else in New York as of January 2025. The EIPA also protects 90% of wages or salary earned in the 60 days before a debt collector attempts to seize funds.

Crucially, EIPA also protects government benefits and retirement funds from being frozen or seized, ensuring New Yorkers have enough money to pay their bills. These funds include:

• Social Security;
• Supplemental security income;
• Disability benefits;
• Unemployment insurance;
• Workers compensation;
• Veterans benefits;
• Spousal support, alimony, or child support; and
• Payments from public or private pensions and retirement accounts, such as 401(k)s or individual retirement accounts (IRAs).

For a copy of the guide, click here.

Beware of Fraudulent NYS Attorney General’s Office Debt Collection Notices

New York State officials have issued an alert based on complaints received from consumers who were recently contacted by scam artists posing as an attorney from the New York State Attorney General’s Office.

The consumers received a notice, written on doctored New York State Attorney General letterhead, that claimed to be a “District Court Final Warning” letter. The notice reportedly gives the impression that the Attorney General is investigating the consumer for the failure to pay a past due debt. The letters also threaten criminal action and arrest if the debts are not paid.

The fake notices are reportedly coming as either a paper letter or an email.

The state’s alert comes just one week after consumers reported receiving unsolicited phone calls from a someone posing as an attorney from the New York State Attorney General's Office.

More information, and tips on how to avoid government imposter debt collection scams can be found here.

Legal links of interest for the week ending November 22

Steven Getman, attorney, reports on some news stories about lawyers and the law in the past week:

Attorney general cracks down on fake online reviews: The agency announced that it had reached a $350,000 settlement with 19 companies for posting bogus online reviews to consumer review sites like Yelp, Citysearch and Google Local.

Democrats vote to curb filibusters on nominees: Senate Minority Leader Mitch McConnell (R-Ky.) called the move a “raw power play” – and said the whole issue was meant to “distract people from ObamaCare.”

Judges must warn about deportation, New York Appeals Court rules: In a 5-to-2 decision, the Court of Appeals overturned its 1995 ruling that deportation is a “collateral consequence” of a guilty plea, and so judges need not warn foreign defendants it might happen.

Justice Alito rips NY federal judge for requiring race- and sex-based law firm staffing: The issue was the practice of U.S. District Judge Harold Baer requiring that class action counsel ensure that attorney staffing of the case reflect the racial and gender of the class.

NY court rejects 'too intoxicated' murder defense: New York’s Court of Appeals upheld the murder convictions Thursday of three drivers who caused deadly crashes, rejecting arguments they were too intoxicated to know the threat they posed.

NY debt collector settles claims of bad business: Authorities said he tried to collect on payday loans, which are illegal in New York state. Those short-term loans are typically advances on a paycheck with exorbitant interest rates.

NY registry to have multiple pictures of sex offenders: The state’s Sex Offender Registry will now display multiple images of convicted sex offenders to help make them more recognizable to the public and law enforcement.

Senate, Assembly to jointly file against Cuomo’s anti-corruption commission: lawyers representing the legislators will argue that the subpoenas are overreaching, violate the constitutional separation-of-powers edict and seek protected client information, sources said.

For more on each of these stories, click on the links above.

Legal links of interest for the week ending January 25, 2013

Some of the stories about courts, the law and lawyers in the news this past week:

• Court strikes down Obama recess appointments: The DC Circuit Court of Appeals has ruled that President Obama’s appointment of three NLRB members was unconstitutional because Obama claimed them as recess appointments when the Senate was not in recess.
• Debt collectors posing as Facebook friends: Some collectors masquerade as friendly personalities to catch an alleged debtor’s attention.
• Sheriffs raise concerns about NY’s new gun law: Some sheriffs said the law takes positive steps to address mental health issues and access to illegal guns, but they said it also infringes on Second Amendment rights,
• Important IRS deadline for small businesses is just daysaway:  If your business paid any individual $600 or more in 2012, the IRS wants to know about it.
• Two sue Subway for 'short' footlong subs: Plaintiffs' lawyer says the company should either make their sandwiches 12 inches long or stop advertising them as footlongs.
• Reid, McConnell reach Senate filibuster deal: The agreement focuses on limiting the ability to stall action at the very beginning of debate and after a bill has passed the Senate and before negotiations begin with the House.
• Foes of New York City soda size limit doubt racial fairness:  The NAACP and the Hispanic Federation, a network of 100 northeastern groups, say minority-owned delis and corner stores will end up at a disadvantage compared to grocery chains. 
• Facebook $20 million “sponsored stories” class-action settlement could mean $10 for users:
  The lawsuit alleges that Facebook “unlawfully used the names, profile pictures, photographs, likenesses, and identities of Facebook users in the United States to advertise or sell products and services through Sponsored Stories without obtaining those users’ consent.”

For more on each of these stories, click the links above.