On August 12, 2024, the New York City Department of Consumer and Worker Protection (DCWP) published its long-awaited amendments to the City’s Debt Collection Rule and an FAQ. DCWP has been working on revisions to this rule since November 2022. It was the subject of two public comment periods which RMAI and an industry coalition submitted detailed responses on December 19, 2022 and November 29, 2023. Unfortunately, the concerns that were raised largely fell on deaf ears.

Please note, this revised rule, as adopted, will dramatically impact any business collecting debts from New York City residents. Based on the perceived difficulty in complying with the onerous provisions contained in the regulations, RMAI would not be surprised if some debt collectors switched to a litigation model or simply decided to forgo collections in New York City.

The rule takes effect on December 1, 2024.

RMAI strongly recommends that any member that engages in collection activities in New York City immediately provide these revised rules to those responsible for legal, operations, and compliance matters.

These rules are significant, complex, and in places arguably contradict existing state and federal consumer protections laws. RMAI continues to work with a coalition of industry stakeholders to develop compliance-related questions for DCWP to protect the business community while at the same time requesting a delayed effective date. More information will be coming soon but some of the provisions you might want to start reviewing include, but not limited to:

  • Monthly Log Requirements (p. 4)
  • Additional Mandated Corporate Policies (p. 6)
  • Definitions of Key Terms (p. 7-9)
  • The Deletion of the Bona Fide Error Defense (p. 10)
  • Communication Restrictions (p. 10-14)
  • Validation Requirements (p. 20-22)
  • Foreign Language Requirements (p. 22)
  • Verification Requirements (p. 23-24)
  • Expanded Itemization of the Debt Requirements (p. 26)
  • Time Barred Debt Requirements (p. 27-28)
  • Medical Debt Limitations (p.28-29)

This Member Alert is intended for members of the Receivables Management Association International, is for informational purposes only, and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.