On August 12, the New York City Department of Consumer and Worker Protection (DCWP) issued a Notice of Adoption regarding amendments to debt collection rules. According to the DCWP, the amendments, effective December 1, will enhance consumer protections and align with changes in federal regulations and industry practices.
Among other things, the amendments will include requirements for debt collectors to provide specific disclosures when collecting on time-barred debt, to maintain comprehensive records of communications, consumer complaints, and other relevant documents, and to obtain consumer consent for electronic communications and provide clear opt-out options. The amendments will also impose restrictions on the frequency and methods of communication with consumers, including the use of email and social media. There will also be enhanced procedure requirements for verifying disputed debts and responding to consumer disputes. The DCWP will also establish specific rules for collecting medical debt, such as prohibiting the reporting of medical debt to consumer reporting agencies.
The notice stated feedback was garnered from public hearings and comments from various stakeholders, including industry associations, consumer advocacy groups, and legal services organizations were reflected in the rules. The DCWP also issued Corresponding FAQs.
