The District Court in Greater Chautauqua Federal Credit Union v. Marks has issued a preliminary injunction stopping the enforcement of New York’s recent amendment to its post-judgment interest rate.
New York recently enacted a law that would have reduced the statutory post-judgment interest rate from the current 9% to 2%. The law was set to be effective on April 30. The amended law would have required any judgment creditor that had an unpaid judgment as of April 30 to recalculate and retroactively apply the 2% interest rate to the unpaid portion of any judgment.
A lawsuit was filed challenging the constitutionality of that law, and on April 28, the NY federal court agreed that the law could not be enforced retroactively.
The ruling does not affect the judgment interest rate going forward, so that any judgment obtained after April 30 should be calculated with the post-judgment interest of only 2%. But, for those that are currently collecting judgments in New York, there is no longer a need to retroactively recalculate the interest charges.
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