Increases penalties for failure to execute and file satisfied judgments of $5,000 or more with court clerk from $100 to $500.
TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to increasing penalties for failure to execute and file satisfied judgments with the court clerk
This bill would raise the fine (from $100 to $1000) on people who do not execute and file satisfied judgments with the court clerk. The goal is to encourage individuals to file so that it will be less likely that someone will have false strikes on their credit report.
SUMMARY OF PROVISIONS:
Section one amends subdivision (c) of section 5020 of the civil practice law a rules to raise the fine for failing to execute and file a satisfied judgment with the proper clerk from one hundred to one thousand dollars.
Section two sets out the effective date.
This bill amends the Civil Practice Law and Rules and affects every civil judgment. Under current law, an individual who receives a satisfied judgement from the court must file a satisfaction of judgment. Most entities such as credit card companies do this as a matter of standard business practice because such satisfactions (or lack thereat) are picked up by credit bureaus. If the entity does not file a satisfaction (even if they got one) and the credit bureau picks it up, then the credit rating of the individual involved in the dispute is affected.
At issue now is the fact that the judgments in housing court and elsewhere are starting to be picked up by credit rating agencies. However, many landlords often fail to file a satisfaction of judgment and so judgments can end up on a tenant's credit report as unpaid, even if that is not true. This bad credit rating disproportionately affects low income citizens because it means that they must pay more for things such as credit cards, car loans and mortgages.
This legislation will most likely affect housing disputes since most other businesses automatically file a satisfaction of judgment. The goal is to increase tines and therefore give landlords and other entities a greater incentive to remember to file satisfactions of judgment. This will result in a decrease in the number of individuals whose credit ratings are affected by a claimant's failure to file a satisfaction of judgment.
S.5219 - A.7922 Rosenthal
This act shall take effect on the one hundred eightieth day after it shall become a law.
STATE OF NEW YORK ________________________________________________________________________ 438 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sen. KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Codes AN ACT to amend the civil practice law and rules, in relation to increasing penalties for failure to execute and file satisfied judg- ments with the court clerk THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (c) of section 5020 of the civil practice law and rules, as amended by chapter 575 of the laws of 1975, is amended to read as follows: (c) When the judgment is fully satisfied, if the person required to execute and file with the proper clerk pursuant to subdivisions (a) and (d)
[hereof]OF THIS SECTION fails or refuses to do so within twenty days after receiving full satisfaction, then the judgment creditor shall be subject to a penalty of one [hundred]THOUSAND dollars recoverable by the judgment debtor pursuant to [Section 7202 of the civil practice law and rules]SECTION SEVENTY-TWO HUNDRED TWO OF THIS CHAPTER or article eighteen of either the New York City civil court act, uniform district court act or uniform city court act; provided, however, that such penal- ty shall not be recoverable when a city with a population greater than one million persons is the judgment creditor, unless such judgment cred- itor shall fail to execute and file a satisfaction-piece with the proper clerk pursuant to subdivisions (a) and (d) [hereof]OF THIS SECTION within twenty days after having been served by the judgment debtor with a written demand therefor by certified mail, return receipt requested. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01836-01-1