Debt Collection in The USA – New York

Location of office(s):

61 Broadway, Suite 2780, New York, NY 10006

Number of staff:


How long been operating in USA:

Since 1982 (37 years)

Type of debts you do? Do you do commercial and consumer?

We handle both commercial and consumer debt.

Minimum size debt:

Five thousand ($5,000.00)

Statute of limitation in USA:

Six (6) years on contract—Four (4) years on sales….However, those figures can vary depending on the state.

What is the Debt Collection process in USA?

Service of summons and complaint; 30 days for Defendant to file answer—if not, then move for default judgment. If Defendant answers, there is a period for discovery and then when completed, the case goes on the trial calendar. We also use summary judgment motions in many collection cases to shorten the process where there is no real issue of fact.

Average length of time to collect?

It can take 5-6 months to get a default judgment—it can take a few years to get a trial date.

Can fees / interest be added to claims?

Legal fees can only be added if provided for in the underlying agreement. Same is true for pre-judgment interest. Court will award court costs upon judgment. Post judgment interest accrues on the judgment amount depending on the state (NY gives 9% interest while New J is closer to 2%).

Brief details on legal service / process in USA

Must comport with ‘due process’. Statute provides several ways to serve and is usually not a problem. We use licensed process servers who know and abide by the legal guidelines.

Getting a judgment is half the battle. Different states in the US have different enforcement mechanisms available and so some are more pro-creditor while others (like Florida) are more protective of the debtor. Judgments in NY, for example, are good for 20 years so there is plenty of time for a smart debtor to slip up!

Debt collection procedures differ from state to state. Creditreform has partnered with an expert in every State and our New York debt collection partner has 35 years experience there. They have proven very successful for Creditreform’s clients over the years successfully recovering many thousands of pounds. As with all our debt collection services this is undertaken on a No Win No Fee basis.

Despite the huge time zone difference with the UK and Europe the USA partners will always keep us up to date with regular progress reports and immediate communications when required ensuring open debt cases are kept up to date at all times.

The legal system in the USA is also different from State to State and no costs or expenses will be incurred without clients’ prior instructions. If in the event legal action is the only way forward clients will be fully advised of the costs, procedures and expected times to proceed. Customer service has always been a main priority for Creditreform and this has to be adhered to by our partners and local offices worldwide. The USA and its States are no exception so they have to meet our high levels of customer service and expectations.

We also carry out pre instruction checks on all debtors before cases are undertaken to ensure we are chasing the correct debtor and they have the ability to meet the claim. Our aim is for clients to have the best chance of a successful recovery and the collection of their money without wasting days, weeks and months either chasing an uncollectable debt or even chasing the wrong debtor.