On Aug. 14, 2014, ACA International submitted extensive comments on a revised proposed debt collection rule issued by the New York State Department of Financial Services
The NYSDFS initially issued a proposed regulation on debt collection by third-party debt collectors and debt buyers in August 2013. However, after receiving thoughtful input from interested parties, including comments from ACA International, the NYSDFS decided to reevaluate and modify the content of the first proposed rule and allow for an additional round of comments.
While ACA is appreciative of the consideration that the NYSDFS gave to the industry’s original comments and its desire to create a more workable regulation, ACA continues to strongly advise the department to refrain from moving forward to a final regulation. The Consumer Financial Protection Bureau intends to create a comprehensive debt collection regulation that will likely encompass the issues addressed in the department’s proposed rules.
Further, ACA again emphasized that the proposed regulation, should it become final, would “place unduly burdensome economic, operational and technological requirements on our members that collect in the state of New York, while providing consumers with little meaningful, corresponding benefit.”
Debt collectors that collect in the state of New York should examine the proposed rule and begin preparing compliance plans to meet the proposed rule’s requirements. While the effective date of any final rule is yet to be determined, it is likely that sections of the final rule will be effective 90 days after it is issued.