Within the past hour, the New York State Department of Financial Services (DFS) issued guidance on how debt collectors should interpret existing DFS rules as it relates to the Consumer Credit Fairness Act (CCFA) which took effect today. Provisions of CCFA contradicted DFS consumer notice requirements. Specifically, CCFA prohibits the revival of a debt that is beyond the statute of limitations through a payment, while the DFS rules require debt collectors to provide consumers a statement that a payment may revive the statute of limitations. RMAI brought this contradiction to the attention of DFS, and we appreciate that the DFS has attempted to address the issue in guidance. RMAI strongly recommends that its members share the DFS guidance with their legal counsel and seek their opinion on how to proceed.
DFS is in the process of updating its debt collection rules, and more appropriate and updated language to address this contradiction is expected when those rules are adopted.
RMAI has previously issued Member Alerts on this issue:
Member Alert: New York Debt Collection Rule Update
Member Alert: New York Governor Signs Consumer Credit Fairness Act Into Law
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.