Debt Collection Regulations in New York

Consumers under the auspices of debt collection regulations in New York

As a consumer, you might find the pestering activities of debt collectors overwhelming. Fortunately, there exist protective debt collection regulations in New York. New regulations, in addition to prior existing ones, were introduced in 2015. These regulations pertain to combatting constant inquiries of “zombie debts,” categorize the type of debts that a consumer has, and enables the consumers to limit communication, between them and debt collectors, through email.

Regulations Appertain to Debt Collectors and Buyers

Per regulations of the state of New York, the definition of debt collectors directly applies to debt buyers. Debt buyers are entities that purchase cheap debt, in big amounts, and then collect the debt.

It is well known that this industry is unacquainted with the types of debts it collects. Moreover, it is frequent that debt buyers pester consumers about debt that they have already paid off, settled, or at the time frame successive of the statute of limitations. These types of debts are called “zombie debts.” Hence, New York established new protective regulations that would fight such unlawful practices.

Regulations of New York

One key regulation is for the debt collector to disclose certain information from the initial communication with the consumer. General information about consumer rights must be provided. This information should include a rundown of collection activities proscribed by the Fair Debt Collection Practices Act (FDCPA). The types of income should be disclosed to the consumer as well, since some are exempted from collection (e.g. could be Social Security income).

Furthermore, the debt collector must disclose information about the debt. This include the identity of the original creditor and an enumerated accounting of the debt as follows:

  • Total debt amount when the original creditor sent it to collection
  • Interest accumulated since charge-off
  • Fees and charges accumulated
  • Consumer remitment since charge-off

These type of debt disclosures will potentially hamper debt collectors from pestering consumers from collecting debt that they do not owe.

In addition, the debt collectors have to disclose the expiration of statute of limitations. If the collector is aware of the expiration, then he or she has to inform the consumer about the expiration; has to inform the consumer about not admitting to owing debt; and has to inform the consumer about restarting the statute of limitations if he or she does not admit to promising to paying the debt.

Substantiation of Debt

In the case that the consumer disputes the authenticity of the debt, a substantiation of debt must be provided to the consumer by the collector. If there is not such requests, the substantiation of debt must be provided within 60 days.


Lastly, the consumer can limit the collector’s communication only through email. Otherwise, the collector may be violating these new regulations.