The debt collection rule amendments relate to consumer disclosures and debt collection communication requirements. The New York City Department of Consumer and Worker Protection will discuss them on Dec. 19; comments are due by that date.
12/01/2022 1:30 P.M.
2.5 minute read
Stakeholders have more time to comment on the New York City Department of Consumer and Worker Protection’s proposed amendments to its debt collection rules before a public hearing Dec. 19, which is also the comment deadline.
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.
The proposed rule amendments include:
- Currently, the rules (Section 2-191) require written notice to consumers that the statute of limitations on certain debt has expired. These proposed amendments would strengthen the disclosure to inform consumers that it is illegal for a business to sue the consumer on a time-barred debt.
- Debt collection agencies are required (Section 2-193(c)) to maintain an annual report identifying, by language, certain actions taken by the agency in a language other than English. Because the report is organized by language, the contents of the report need not be limited to actions taken in a language other than English. The department is proposing to amend the subdivision so that it applies to actions taken in any language.
- Debt collection agencies are also required to maintain other records (Section 2-193.) The department’s proposed amendments would extend the requirements to cover all records showing compliance with relevant laws and rules as well as monthly logs documenting certain consumer interactions.
The department is proposing to add various definitions to Section 5-76 of its rules that would provide guidance and clarity to the industry on new requirements in Section 5-77 (Sections 3 and 4).
The department is also proposing minor edits to Section 5-77 to increase clarity. These edits include additional guidance on how debt collection agencies must provide information about the department’s website and post information on their own websites (Section 5).
The department is also proposing more substantive edits to Section 5-77. These amendments would:
- Clarify what information debt collectors must provide to consumers at the outset of debt collection communications.
- Place limits on the frequency of debt collection communications.
- Require debt collectors to disclose the existence of a debt to consumers before reporting information about the debt to a credit reporting agency.
- Clarify how debt collectors may employ modern communication technologies in compliance with the law, including voicemails, email, text messages and social media (Section 5).
Hearing and Comments
Access the department’s Dec. 19 hearing online (PDF) or participate in the public hearing by phone at (646) 893-7101.
Meeting ID: 214 275 313 417
ACA International and the New York State Collectors Association are reviewing the proposal and expect to file formal comments with the department. ACA members are also encouraged to participate in the Dec. 19 meeting and file comments.
If you have questions, or are interested in filing comments, contact ACA’s Vice President of State Unit and Government Affairs Andrew Madden at [email protected].
You can submit comments to DCWP through the rules website at:
Comments are due by Dec. 19.
If you have executive leadership updates or other member news to share with ACA, contact our communications department at [email protected]. View our publications page for more information and our news submission guidelines here.