NEW YORK (WWTI) — The Office of the Attorney General announced Monday that suspension of state debt collection will be renewed for the seventh time.
New York Attorney General Letitia James announced on October 5 that New York has renewed the order to halt state medical and student debt collection specifically referred to the OAG. This order will be renewed for an additional 30-day period, through November 3, 2020.
According to Attorney General James, this decision was made due to the financial impairments following the spread of the COVID-19 virus.
“Coronavirus is not gone, and neither are the financial hardships New Yorkers are facing as a result of it,” said Attorney General James. “It is my hope that by again renewing the suspension of state student and medical debt referred to my office, we can reduce the burden faced by individuals and families during these difficult times. I will continue to do everything in my power to support our state’s economy so that New Yorkers can support themselves.”
According to the Office of the Attorney General, over 165,000 matters fit under the criteria for the suspension of debt collection. This includes:
- Medical debt owed to the five state hospitals and five state veterans’ homes
- Student debt due to the State University of New York
- Individual debtors, sole-proprietors, small business owners and certain homeowners that owe debt relating to oil spill cleanup and removal costs, property damage and breach of contract
Additionally, the order automatically suspending accrual of interest and collection of fees on state medical and student debt referred to the OAG.
The renewal announced on October 5 proceed the seven extensions stemming from the order made in March 2020.
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