The New York City Department of Consumer and Worker Protection (DCWP) is proposing amendments to their Debt Collection Rule. If these amendments are adopted, they would dramatically impact any business collecting debts from New York City residents. Some businesses may even decide to switch to a litigation model or forgo collections in the city due to the difficulty in complying with the onerous requirements of the proposed rule.

We ask that RMAI members that engage in collection activities in New York City send a comment to DCWP by 11:59pm eastern tomorrow, November 29th. You can send your comments by email or through the DCWP website.

A short paragraph should be sufficient. Here are some tips:

  • Put your comments in your own words.
  • If you are a small business, point that out.
  • Stress the importance that any revised rules be consistent with CFPB’s Regulation F, New York State law, and New York State Department of Financial Services regulations.
  • Request that DCWP provide an effective date a year from adoption (right now it would take effect immediately upon adoption).
  • Whether your business is considering switching to a litigation model or forgoing collections in the city due to the difficulty in complying with the onerous requirements of the proposed rule.

We are not providing a script because it is important for each comment to sound different from each other as it will give the comments increased credibility than a form letter.

For those who want to write a longer comment and give examples of problems, please look at the industry coalition redline of requested amendments to the rule. The industry’s suggested amendments appear in red font and include comments in the margins.

Feel free to expound on any point by telling DCWP how their rule will harm New York City consumers and the business community if adopted without further changes.

Please note that your comments will be available to the public on the DCWP website.

Each trade association and business listed on the industry redline will be attaching the redline to their comments.

We sincerely appreciate any assistance you can provide.

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.