New Law Requires Collection Agencies to Inform Surviving Family Members They Are Not Legally Obligated to Repay Debt of Deceased Debtors

Governor Andrew M. Cuomo announced on March 28th that a new law limiting debt collections against deceased debtors and their families is now in effect. If an individual dies with an outstanding debt, collection agencies seeking to collect on the debt from next-of-kin or surviving family members must affirmatively inform them that they are not legally obligated to repay the debt. Specifically, no principal creditors and/or debt collection agencies can make any representation that a person is required to pay the debt of a family member in a way that contravenes with established fair debt collection practices.