The complaint is the first enforcement action since the rules took effect in 2014.
9/17/2020 10:30
The New York Department of Financial Services (DFS) filed a statement of charges against a debt collector for alleged violations of New York State’s Debt Collection Regulation.
The debt collector, Forster & Garbus LLP, allegedly “did not honor requests by consumers for substantiation of debt, that is, requests for information proving the validity of the debt and Forster & Garbus’s right to collect the debt,” according to a news release from the DFS.
New York law requires that substantiation be provided within 60 days of any such request and describes the particular kinds of documentation a collector must show to substantiate the debt.
There will be a hearing on the statement of charges on Jan. 12, 2021.
The debt collection regulation was amended in 2015 and included substantial industry input, according to the DFS.
ACA International and members of the New York State Collectors Association advocated on behalf of the accounts receivable management industry by filing formal comments and meeting with the DFS before the rules took effect. ACA also pushed for additional clarification after the ruled was published, which the DFS provide in the form of FAQs posted on their website. ACA gave an industry perspective on the rules, which require debt collectors to provide several initial disclosures, including consumers’ rights under the Fair Debt Collection Practices Act, protected property, an itemization of charged-off debts and a statute of limitations disclosure.