Residents of NYS should check out the new regs pertaining to debt collectors, announced 12/3/2014, and taking effect next year. They can be found at 23 NYCRR Part 1,
In summary, they provide:
• Enhanced Initial Disclosure Debt collectors are required to provide additional information beyond current federal requirements including the debtor’s rights, the original creditor’s information, and specific information about charged-off debts such as the total amount owed at charge-off, total post-charge-off interest, charges, fees and payments made.
• Disclosure of Debtor’s Defense for “Time Barred Debt” Debt collectors must maintain reasonable procedures to detect whether the statute of limitations on a debt has expired. Prior to accepting any payment on a debt that the debt collector knows or has reason to know is time barred, the debt collector must provide a notice to consumers that includes a statement about the possible expiration of the statute of limitations on the debt, the consequences of making payments, and the possible statute of limitations defense in any lawsuit.
• Substantiation of Consumer Debts To ensure the legitimacy of consumers’ debts, if a consumer makes a request to a debt collector for substantiation of a charged-off debt, the debt collector must cease collection and, within 60 days of receiving the request, provide written substantiation of the debt to the consumer. The debt collector’s substantiation to the consumer must include a copy of a judgment against the consumer or other documentation, including the signed contract that created the debt, account statements, a prior settlement agreement, and documentation indicating chain of title. Upon providing such substantiation to the consumer, the debt collector may recommence collection activities.
• Written Confirmation of Settlement Agreements To ensure a debt collector’s compliance with settlement agreements, within 5 business days of entering into the agreement, consumers must be provided with a written confirmation of the payment schedule and a delineated notice. The debt collector must also provide an accounting of the debt on at least a quarterly basis. Additionally, within 20 business days of the receipt of a payment satisfying a consumer’s debt, the debt collector must provide to the consumer a written confirmation of the satisfaction.
• Opportunity for Communication Through Email Consumers will now have the opportunity to communicate with a debt collector through email if consumers choose to provide the debt collector with their individual email accounts and consent in writing to receive email correspondence.
The effective date of the new regulation is March 3, 2015, except for section 1.2(b) (relating to disclosure requirements), and section 1.4 (relating to substantiation of debts).
Starting Score:625
