On Friday evening, October 18, 2024, ACA International and Independent Recovery Resources Inc. filed suit against New York City for declaratory and injunctive relief from the debt collection rule promulgated by the New York City Department of Consumer and Worker Protection (DCWP) on August 12, 2024. RMAI, the National Creditor’s Bar Association, and several other industry participants have contributed both financially and strategically to the efforts.
The lawsuit challenges the rule on six claims including violations of the 1st, 5th, and 14th Amendments of the United States Constitution as well as violations of the New York State Constitution.
Since the rule’s adoption, RMAI, ACA International, and the New York State Collectors Association have been in joint communication with DCWP where we have expressed serious concern about the ability to operationalize the rule by its December 1st effective date as well as confusing and contradictory provisions contained therein. See related RMAI Member Alert.
The industry associations had a joint meeting with DCWP representatives on Thursday, October 17, 2024, and following that meeting determined that the industry had no choice but to seek recourse through the judiciary.
This effort is a great example of what the industry can accomplish when it comes together to support their memberships and the broader financial services industry.
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.