Governor Hochul Signs Consumer Judgement Interest Act Into Law

(Albany, NY) — Governor Kathy Hochul today signed the Consumer Judgement Interest Act (S.5724A/A.6474A) to protect New Yorkers from excessive interest rate on money judgments arising out of consumer debt, including medical and student debt, by capping judgment interest rates to two percent. The legislation was sponsored by Senator Kevin Thomas (D-Levittown), who Chairs the Senate Committee on Consumer Protection, and Assemblymember Helene Weinstein (D-Brooklyn). 

The long-standing need for this change in law has been exacerbated by the COVID19 pandemic, which has imposed unprecedented financial pressure on consumers and disproportionately impacted lower- and middle-income New Yorkers. 

The law will take effect in 120 days and will apply to all money judgments arising from consumer debt, including judgments that are not yet fully paid and satisfied as of the effective date of the act.

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