Comments during a public hearing on the city’s proposed debt collection rule amendments also call for alignment with pending state laws and a delayed effective date of a final rule.
12/08/2023 2:10 P.M.
2 minute read
Nearly a year since the New York City Department of Consumer and Worker Protection’s (DCWP) last public hearing on proposed debt collection rules, the agency was back with amendments in a hearing for stakeholder comments held Nov. 29.
The accounts receivable management (ARM) industry was again well represented by a coalition of advocates from ACA International, the New York State Collectors Association (NYSCA), as well as the Receivables Management Association International and New York State Creditors Bar.
The proposed rules would substantially expand current record retention and reporting requirements for collection agencies and would revise validation and verification procedures. Additionally, the proposal would require debt collectors to inform consumers about language access services.
The proposed amendments to the rules would strengthen consumer disclosures and update requirements for reports licensed agencies must submit to the department, among other changes.
After a public hearing on Dec. 19, 2022, and a review of all the comments, the DCWP provided the proposed amendments again to further address trade practices and consumer protection concerns as it pertains to debt collection from New York City residents.
Industry representatives speaking in the 2022 public hearing provided a consistent message, requesting the DCWP avoid conflicts with other state and federal laws, wait until the New York Department of Financial Services finalizes its pending debt collection rulemaking, and seek uniformity with other state and federal laws to avoid confusing New York City consumers, ACA previously reported.
Comments this year continued that messaging with a specific focus on modifying the proposal’s requirements on call frequency and the validation notice, for example, in line with the CFPB’s Regulation F.
Katie Borchers, president and CEO of Beyond Green Solutions and vice president of the NYSCA, spoke during the hearing on the need for regulators to refrain from duplicative rules that only increase costs for businesses and compliance challenges, which trickle down to consumers.
David Peltan, partner at Peltan Law, PLCC and president of NYSCA, added the rules should reflect the ability for businesses to communicate with consumers in the channel and frequency of their choice.
Comments from ACA and the NYSCA (PDF) and other stakeholders are available on the DCWP website.
In addition to changes on consumer communication requirements and the validation notice, among others, Andrew Madden, vice president government and state affairs for ACA, requested a delayed effective date of the final rule applied prospectively.
“The compliance systems and training programs needed to comply with local, state and federal laws are very complex and cannot be changed overnight,” Madden said.
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