On November 1, the New York City Department of Consumer and Worker Protection (NYC DCWP) announced that the effective date for the amended debt collection rules has been officially moved to April 1, 2025.
Late last month, we discussed how the NYC DCWP had delayed the enforcement of the new rules from December 1, 2024, to April 1, 2025, in response to industry concerns and a legal challenge filed by ACA International, Inc. and Independent Recovery Resources, Inc. The rules, which impose stringent regulations on debt collection activities in New York City, were initially set to be enforced starting December 1, 2024. However, the enforcement date was postponed to provide debt collectors with additional time to comply with the new requirements.
According to the NYC DCWP’s November 1 announcement: “The effective date for the final rules of the Department of Consumer and Worker Protection relating to debt collectors published in the City Record on August 12, 2024, has been changed from December 1, 2024, to April 1, 2025.”
This change means that debt collectors now have until April 1, 2025, to ensure compliance with the new regulations. The amended rules include detailed record-keeping and communication log requirements, expanded debt validation obligations, and other provisions that have been described as vague and challenging to implement. The delay in both the effective date and enforcement provides a crucial grace period for debt collectors to adapt their systems and processes to meet the new standards.
