By Jon Hill (April 4, 2022, 5:56 p.m. EDT) – Three federal credit unions are suing to block a soon-to-be-enacted New York State law that lowers the statutory interest rate on judgments in consumer debt cases from 9% to 2%, a measure aimed at easing pandemic-related financial burdens for borrowers but which is being challenged as unconstitutional.
The credit unions, which are based in western New York, presented their challenge in a class action lawsuit filed Monday in Manhattan federal court, asking the court to strike down the Judgment Rate Reduction Act. of the State, S.5724A, as a violation of constitutional process and property rights.
The trio also asks for a preliminary…
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