RMAI has learned that the New York City Department of Consumer & Worker Protection (DCWP) will publish later this week a revision to the Debt Collection Rule they adopted on August 12, 2024. The rule was originally scheduled to be effective December 1, 2024, but was later amended to be effective on April 1, 2025.
DCWP will announce the effective date for the rule will be extended to October 1, 2025 so that they have an opportunity to consider revisions to the rule. It is RMAI’s understanding that the entire rule will be republished for a new comment period.
DCWP’s anticipated approach would appear to mirror RMAI’s recommendation in our last communication with DCWP on December 12, 2024, which read: “Based on the foregoing analysis, RMAI believes that the Department needs to retract its adopted rule, address the issues of constitutionality, clean up the rule’s conflicts with state and federal laws and regulations, properly notice creditors of their intended inclusion within the rule, and republish for public comment before readopting the rule.”
Please see related RMAI Member Alerts from August 16, 2024, October 21, 2024, and November 4, 2024.
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.