The amendments may consider state and federal requirements for debt collectors and are tentatively expected to be released this summer.
05/26/2023 2:00 P.M.
2 minute read
The saga on proposed debt collection rules in New York continues, with the latest chapter being an updated regulatory agenda on proposed rules from the New York City Department of Consumer and Worker Protection (DCWP). The proposed rules were initially released for public comment last fall.
In 2022, accounts receivable management (ARM) industry representatives testified in a virtual public hearing requesting the DCWP to avoid conflicts with other state and federal laws, wait until the New York Department of Financial Services (NYDFS) finalizes its pending debt collection rulemaking, and to seek uniformity with other state and federal laws to avoid confusing New York City consumers, ACA International previously reported.
The recently released New York City regulatory agenda (PDF), confirms the DCWP is continuing to work on amendments to the rules governing debt collection agencies.
The DCWP states in the agenda that it is planning amendments to the proposed rules focused on language access services, medical debt and required disclosures “in an effort to harmonize state and federal requirements.”
The approximate schedule for the amendments is June-August 2023.
State-Proposed Rules
Meanwhile, the NYDFS has also proposed third-party debt collection rules at the state level.
In November 2021, the NYDFS posted the previous draft proposed amendments (PDF) to part one of the Regulations of the Superintendent of Financial Services (23 New York Codes, Rules, and Regulations Part 1, Debt Collection by Third-Party Debt Collectors and Debt Buyers) for comment, ACA previously reported.
When the original proposal was issued last year, ACA sought clarity from the NYDFS on why it was moving forward with the proposed amended debt collection rules in the immediate wake of Gov. Kathy Hochul signing the New York Consumer Credit Fairness Act into law, and detailed how the proposal directly conflicts with Regulation F.
In the new proposal (PDF), which had a comment period that ended in February 2023, there are amendments to disclosure requirements, validation information for a debt, telephone and electronic communications and prohibitions on excessive communications or attempts to communicate with a consumer, among others.
ACA and the New York unit will continue working with a broad industry coalition of advocates to ensure industry priorities are highlighted and that the NYDFS and DWCP are aware of any conflicts in the proposed rule with federal, state and local laws. The focus on potential conflicts will include the recently proposed amendments to New York City’s debt collection regulations.
ACA will provide updates for members on the proposed rules in ACA Daily and on the ACA Huddle.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA profile when logged in to acainternational.org to receive updates on the ACA Huddle.
