(NEWS10) – A proposed new amendment introduced by the Department of Financial Services (DFS) seeks to protect consumers from predatory debt collection practices and scams. DFS said the amendment will ensure New Yorkers pay only debts they owe and pay them only once.
According to DFS, its investigation found abusive and deception of debt collections, as well as data on consumer complaints to regulators. Officials say predatory debt collection practices can deceive consumers and ultimately lead them further into economic hardship.
The DFS’ proposed new amendment to 23 NYCRR 1, will further protect consumers in the department’s regulation of governing debt collectors and debt buyers by enhancing consumer protections through increased transparency and prevention of harassment. It will require clear communication of debt obligations to ensure the consumer has the right information to dispute the validity of the debt.
The proposed amendment will:
- Help ensure consumers pay only debts they owe and pay them only once by mitigating opportunity for predatory debt collection
- Require debt collectors to provide key data about the alleged debt to the consumer and maintain records so that the consumer can identify the debt or dispute the allegation
- Reduce opportunities for debt collectors to mislead consumers about the character of the debt and their obligations to pay through disclosure requirements, including mandated written disclosures
- Limit harassing phone calls and other excessive communication from debt collectors
Check out the amendment here: