New York Already Proposing Even More Process Service Regulations

By February 18, 2013 3 Comments

New York has already seen a slew of new legislation in the wake of an extreme case of sewer service resulting in nearly 100,000 cases being overturned.  From licensing to GPS requirements to hefty fines, the impact has been felt.  Now it seems as though another piece of ruling is on the table that has a number of implications for servers.

To start, a process server will be required to obtain a license renewal every two years at a cost of $500.  In addition there are stricter rules surrounding the licensing number received such as:

  • Any advertisement, letterhead, receipt or printed matter must contain the license number
  • Servers cannot indicate that because they have a license number that it is an endorsement of their quality of work in any way

Fines are attached to these rules, with a fine of no less than one hundred dollars and no more than $2,000.  That is, if the secretary doesn’t suspend revoke or suspend your license that is.

The new ruling also lays out new rules for the need of a bond, contract of indemnity or irrevocable letter of credit dependent on the number of employees (only counts those who engage in service of process):

  • 1-4 employees: $10,000 bond
  • 5-9 employees: $25,000
  • 10-20 employees: $50,000
  • 20+ employees: $75,000

Violations in this section can cost a server anywhere between one hundred and $10,000 for each penalty.

It would seem as though change is coming to the process service industry in the face of a legal system where concern involving sewer service is on the rise.  

Take a look at the full piece of legislation.

How do you feel about this rule?

Join the discussion 3 Comments

  • NY process servers are being scapegoated. The jerks who did the gutter service were NOT process servers. Proof: they were getting between $3 and $10 per delivery. See the NY City Counsel press conference at https://www.youtube.com/watch?v=CqrVCQjcVQw or just type “NYC press conference process servers” in the youtube search box. Law abiding process servers of NY should unite, speak out and resist regulations that will do nothing more than punish them. The attorneys who knew something was going on must be held accountable.

  • This will put us out of business

  • William Reed says:

    Tod, unfortunately, they were Process Servers, the rate of pay they was getting is common when they are dealing with collection agencies that farm out work like that. Collections and foreclosures pay very little, when dealing with firms that farm out the work. Even the collection agencies themselves are cheap on the pay as well.

    Even Provest ( a reputable nationwide firm based out of Fl) pays $10 per serve.

    Denise, this is really an attempt to fix the states budget as NY is bleeding money big time. I am not happy about this bill, but am prepared for it.

    Once again unfortunately here in NY there is a lot of bad apples that is bringing too much negative attention, and we are paying for it.

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