OAG referred state debt collection suspension renewed through end of 2020



NEW YORK (WWTI) — New York State has renewed the suspension for state debt collection.

New York Attorney General Letitia James and New York Governor Andrew Cuomo have announced that the state has renewed, for the eighth time, the suspension to collect all state medical and student debt. The suspension applies to all medical ad student debt owed to the state and specficially referred to the Office of the Attorney General.

This decision was announced on November 4, 2020 and will confirm the extension of the suspension through December 1, 2020.

According to the Office of the Attorney General, this extension currently applies to more than 165,000 matters statewide. This includes:

  • Patients that owe medical debt to five state hospitals and five state veterans’ homes
  • Students that owe student debt due to SUNY campuses
  • 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, as well as other fees owed to state agencies

Additionally, the order suspended the accrual of interest and collection of fees on state medical and student debt referred to the OAG.

AG James commented on this decision and its extension, as it will impact the upcoming holiday season.

“As COVID-19 continues to spread, more and more New Yorkers are feeling its financial impact,” said Attorney General James. “As we approach the holiday season and more begin to worry about their finances, my office is renewing the suspension of state and medical debt through the end of the year in order to alleviate some of these hardships and help New Yorkers make it through these difficult times.”

Governor Cuomo also commented on how this decision was made following economic hardships brought on by the coronavirus pandemic.

“New Yorkers made enormous sacrifices to bend the curve of this deadly virus, and we recognize many people are still struggling with both emotional pain and economic hardship as a result of this crisis,” stated Governor Cuomo.“Renewing the suspension on the collection of student and medical debt that is referred to the attorney general’s office through December 31, 2020 will help lessen the burden faced by so many families and businesses whose livelihoods have been affected by the pandemic.”


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