New York Financial Services Regulator Uses New Authority To Propose Debt Collection Regulations


On July 25, the New York Department of Financial Services (DFS) proposed new regulations related to third-party debt collection in that state. The proposal is the DFS’ first use of the statutory “gap authority” that allows it to regulate and enforce rules against previously unregulated providers of financial products and services. The proposed regulations (i) establish initial disclosures that incorporate federal requirements and require collectors to provide details about the nature of the debt; (ii) set new disclosure requirements for time-barred debt; (iii) require collectors to provide specified verification of disputed debts; (iv) require collectors to provide written confirmation of a debt settlement; and (v) allow consumers to communicate with collectors via email. The DFS will accept comments on the proposal for 45 day following publication in the state register.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.