New York has paused collection of some state-owned debt. Currently, there is no pause for privately owned debt, which might make it hard for some people to settle debt collection claims if they can’t pay due to the coronavirus outbreak.
Some of our clients have made internal decisions to cease collection efforts until May 15 while New York is on “pause” during the coronavirus pandemic. For those who are still pursuing collection or have been pursued by creditors for payment of consumer claims, the Federal Trade Commission has advice on how to respond to a demand for payment if you cannot afford it.
If a debt collector calls, the FTC says you should talk to them at least once, which can be useful in confirming that it really is your debt. You may be able to talk through a payment plan or a settlement.
Remember, debt collectors have to follow the rules when they contact you. Debt collectors are limited in what they can do during the lockdown. According to the FTC, many states and local governments — including New York — have temporarily halted actions like evictions, foreclosures, and water and utility shutoffs.
If you find yourself in a situation where you as a business owner have defaulted in payment and need assistance, please contact FFGN. We know how to help.