ALBANY, N.Y.–New York Governor Andrew Cuomo has announced some of the most sweeping moves of any state aimed at easing financial hardships being caused by the coronavirus, including a plan that would suspend mortgage payments and the collection of student and medical debt for certain borrowers as well as waive fees for ATMs, credit cards and overdrafts.
Under the plan related to mortgages announced by the governor during a news conference, Cuomo said a new rule will allow for the suspension of mortgage payments for 90 days for borrowers who face financial hardship such as losing their job.
“This is a real-life benefit,” Cuomo said during the press conference. “People are under tremendous economic pressure. Making a mortgage payment can be one of the number one stressors. Eliminating that stressor for 90 days, I think, will go a long way.”
Cuomo said he is also moving to temporarily postpone or suspend foreclosures, and he will waive fees for ATMs, credit cards and overdrafts. Details on exactly how those waivers are to work or when they would go into effect were not released.
Suspended Collection of Student, Medical Debt
Separately, Cuomo was joined by New York Attorney General Letitia James in announcing the state will also temporarily halt the collection of medical and student debt owed to the State of New York and referred to the Office of the Attorney General (OAG) for collection, for at least a 30-day period in response to growing financial impairments resulting from the spread of the coronavirus.
“Countless New Yorkers have been impacted — directly or indirectly — by the spread of COVID-19, forcing them to forgo income and business,” the AG’s office said in a statement. “In an effort to support these workers and families and ease their financial burdens, the OAG will halt the collection of medical and student debt owed to the State of New York and referred to the OAG for collection from March 17, 2020 through April 16, 2020. After this 30-day period, the OAG will reassess the needs of state residents for a possible extension. Additionally, the OAG will accept applications for suspension of all other types of debt owed to the State of New York and referred to the OAG for collection.”
Not Adding Undue Stress
Added James in the statement, “In this time of crisis, my office will not add undue stress or saddle New Yorkers with unnecessary financial burden. New Yorkers need to focus on keeping themselves safe and healthy from the coronavirus, and therefore can rest assured that state medical and student debt referred to my office will not be collected against them for at least 30 days. This is the time when New Yorkers need to rally around each other and pick each other up, which is why I am committed to doing everything in my power to support our state’s residents.”
Cuomo said the state is doing everything it can to support the thousands of New Yorkers who are suffering as a result of the disruptions caused by the COVID-19 pandemic.
“This new action to temporarily suspend the collection of debt owed to the state will help mitigate the financial impact of the outbreak on individuals, families, communities and businesses in New York as we continue to do everything we can to slow the spread of the virus,” Cuomo said.
The Criteria Details
The OAG collects certain debts owed to the State of New York via settlements and lawsuits brought on behalf of the State of New York and state agencies. A total of 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’ home
- Students that owe student debt due to State University of New York (SUNY) 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
The temporary policy will also automatically suspend the accrual of interest and collection of fees on all outstanding state medical and student debt referred to the OAG for collection, so New Yorkers are not penalized for taking advantage of this program, the AG’s office stated