The New York Department of Financial Services yesterday issued its long-awaited debt collection rule amendments, which are scheduled to take effect in 180 days, in late June 2023.
Among the amendments are:
- When sending written notification within five days after the initial communication, collectors must include validation information required under Regulation F, but are not allowed to use the charge-off date as the itemization date unless the account was a revolving or open-end credit account, and other than for revolving or open-end credit accounts, collectors should use the last payment date, if it is available. Collectors must also indicate which type of itemization date is being used.
- For revolving or open-end accounts, collectors must also include an account number, or a truncated version of the account number that was associated with the debt on the last payment date or last statement date with a disclosure informing the consumer that the account number is associated with either the last payment or last statement date.
- Collectors are limited to one completed phone call and three attempted phone calls per seven-day period per alleged debt.
- Electronic communication may be used only if the consumer has voluntarily provided contact information to the collector and is not owned by the consumer’s employer, the consumer has given revocable consent in writing to receive electronic communication, which includes an electronic signature, the collector retains the consent for six years or until the debt is discharged, sold, or transferred, and any electronic communication must include clear and conspicuous opt-out disclosures.
- There are also changes related to the disclosures used when collecting on time-barred debts.
A copy of the amendments can be accessed by clicking here. A copy of the assessment of public comments that were submitted can be accessed by clicking here. A comment period on the amendments is open until February 13, 2023.