Dear John W. McConnell, Esq.,
I hope this letter finds you well. As a potential party impacted by the recent rules proposed by the New York Unified Court System, I am writing to express my general opposition to the proposed regulations.
While I acknowledge that there have been instances of unethical behavior among a small group of debt industry players, I believe the proposed rules are overly restrictive and could harm many small businesses, not just debt buyers and collectors, that would be unable to meet the requirements set forth. The rules would negatively impact any business that enters into a contract with a consumer or requires a loan from a financial institution.
Given the current legal limitations and regulations that limit lending by banks and other institutions, further regulation beyond reasonable standards (many of which are already regulated under the FCRA and FDCPA) would reduce the amount of funds available for small businesses to borrow, leading to economic consequences and a decrease in economic activity.
Many of the proposed documentation requirements are based on a lack of understanding about the records that banks retain and provide to debt buyers. With an increasing trend towards online accounts and paperless record-keeping, requiring original documentation places an undue burden on banks, collectors, attorneys, debt buyers, and sellers and can result in legitimate contracts being denied, allowing debtors to exploit the system.
I believe the problem is often exaggerated and a vocal minority is overwhelming the system, rather than allowing a legitimate process that has proven successful over time to enforce contractual obligations of both debtors and creditors.
In regards to the court system, creditors would benefit from the following:
- Legal enforcement against debtors who make false claims against creditors.
- A "loser pays" system to assist in determining the legitimacy of lawsuits.
- Clear rules on acceptable copies when originals are not available.
- Prevention of habitual offenders from continuing to abuse the system.
Thank you for considering my perspective. If you have any questions or concerns, please do not hesitate to contact me.