In New York City, residents are protected from “harassment” by debt collection agencies under New York Consumer Protection Law. And the Department of Consumer Affairs (DCA) is the main agency that handles complaints related to debt collection issues. DCA also ensures that New York residents are protected from abusive practices of companies.
Debt Collection Guidelines in New York
- DCA License – Debt collection agencies who are collecting debts from residents of New York City are required to secure a license from DCA in order to legally collect debts in New York City.
- Statute of Limitations – If the right to sue to collect debt by the creditor or the debtor has already prescribed, the debtor may no longer be compelled to pay and may choose not to pay. In general, the statute of limitations for debts secured by written agreements are 6 years and 3 years for debts that are considered as medical debts under the law.
- Full Information about the Debt – The debt collection agencies are required by law to provide full information to debtors about the debt which includes but not limited to the amount of debt, name of the original creditor, name of the collection agency, etc.
- Harassment – The debt collection agencies are guilty of harassment if they do any of the following act such as calling the debtor excessively or multiple times throughout the day, contact other people and divulge information about your debt, etc.
- False Claims – It is illegal for a debt collection agency to make false claims such as the debtor will be imprisoned if he she does not pay, that non-payment of debt may lead to deportation, and other similar untrue statements.
- File a Complaint – If you believe that the debt collection agency is violating any of the laws related to debt collection such as it does not have a license, it does not provide full information about the debt, etc., then debtor may file a complaint to the Department of Consumer Affairs.
If you are interested to know more New York debt collection laws, please checkout: Federal Government Considering New Debt Collection Rules, Collecting an Unpaid Debt in New York, and Collecting Unpaid Invoices in New York: New York Collection Law Basics.
And if you need additional information about Debt Collection in New York, you may also schedule a No-Charge Initial Consultation with a New York lawyer at: Schedule a Call with a Lawyer.