Suspension of state debt collection renewed again for New Yorkers

ABC50 NOW

FILE- In this June 15, 2018, file photo, twenty dollar bills are counted in North Andover, Mass. Default on your federal student loans and the government can take up to 15 percent of each paycheck to satisfy your debt. The Education Department can also withhold federal benefits like tax returns and Social Security payments. Garnishment is an effective tool to recoup unpaid loans, private collection agencies enlisted by the Education Department took in over $841.6 million via wage garnishment in the 2018 fiscal year, but it inflicts serious financial strain on borrowers who are already struggling. (AP Photo/Elise Amendola, File)

NEW YORK (WWTI) — The New York State Office of the Attorney General will renew the state suspension of debt collection for the fifth time on August 16.

New York Attorney General Letitia James announced the collection of medical and student debt owed to the state of New York, specifically referred to the OAG, will freeze all payments through September 4.

The date coincides with Governor Cuomo’s most recent executive order tolling statutes of limitation and other legal time periods.

“Although New York has had remarkable success in containing the coronavirus, too many New Yorkers are still enduring the financial hardships of this pandemic,” said Attorney General James. “We have the power to help tens of thousands of New Yorkers who are struggling to make ends meet, which is why we are again suspending the collection of state student and medical debt referred to my office.”

More than 165,000 matters currently fit the criteria for a suspension of state debt collection, including, but not limited to:

  • Patients that owe medical debt due to the five state hospitals and the five state veterans’ homes
  • Students that owe student debt due to State University of New York 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.

LATEST STORIES:

Stay up-to-date by liking ABC50 on Facebook.

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.