New York State’s Department of Financial Services (DFS) Thursday announced a set of proposed regulations that it said are a “set of nation-leading reforms to help protect consumers against abusive and deceptive debt collection practices.” While the new regulations do impose many new requirements on ARM companies operating in the state, they also pave the way for authorized email communications with consumers.
The DFS said that the proposed regulations would cut down on repeated, harassing phone calls from debt collectors; guard against the collection of time-barred debt; prevent situations where companies try to collect debts from the wrong consumer for the wrong amount of money due to shoddy recordkeeping, as well as address other widespread abuses in the debt collection industry.
“Far too often, the debt collection industry has used despicable, high-pressure practices to intimidate struggling New Yorkers who have fallen on hard times,” said New York Governor Andrew Cuomo. “These nation-leading reforms will help make sure that consumers are protected and know their rights.”
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