Debtors Victimized by Violations of New York Debt Collection Laws

Many New Yorkers have been victims of violations of New York debt collection laws set in place to help and protect them from abusive and unethical debt collection practices.

Today, debt collectors, operating on behalf of student loan companies, credit card companies, and major banks, can be more aggressive and abrasive than ever. However, New York debt collection laws do provide New Yorkers protection from harassment and other unlawful behavior.

Some of the collection tactics prohibited under New York debt collection laws include:

• Harassment
• Making threats
• Calling at inconvenient times of the day, or calling too often
• Adding collection charges and fees to your debt
• Sending confusing letters
• Communicating with third parties about your debt
• Making robocalls
• Collecting on old debts

Federal and New York Debt Collection Laws

The Fair Debt Collection Practices Act (FDCPA) is a federal law enacted to help restrain and prohibit actions such as harassment and other unfair debt collection practices committed by third party debt collectors. Congress passed the FDCPA in 1978.

Third party debt collectors must follow rules set by the FDCPA when collecting on consumer debts. Some regulations set by the FDCPA include the hours a debt collection may be in contact. Typical hours are usually set between 8:00 AM and 9:00 PM. Some other restrictions set by the FDCPA also include the following:

• Collection of old debts: Debt collectors may not sue or threaten to file suit on debts that have been time-barred by threatening litigation. This includes debts that have been in default for more than four years.
• Submitting Improper Reports to Credit Reporting Agencies: The FDCPA limits what debt collectors may or may not report to credit reporting agencies. Additionally, when a debtor disputes a debt, debt collectors may fail to report the dispute to credit reporting agencies.
• Failing to Stop Communication with a Debtor When Asked: Debt collectors must follow any written requests made by a debtor for the ceasing of communication if they wish to no longer be communicated with. Any written cease and desist request must be followed and can be a violation of the FDCPA. Violations of the FDCPA also include debt collectors calling at inappropriate times, or contacting your employer when you have requested them not to.
• Improper Communication with Third Parties: Violations of the FDCPA include third party debt collectors contacting a debtor’s employers, family members, and neighbor when collecting on a debt.
• False Statements and Deceptive Practices: The FDCPA prohibits any type of deception of being used through the collection of debts. Some illegal practices, however, may include attempting to collect a debt that is not owed, misrepresenting the debt amount, mailing or sending out confusing letters, lying about being government representatives or debt attorneys.
• Harassment by Phone: The only hours debt collectors may be in contact include between the hours of 8:00 AM and 9:00 PM. Any contact outside of that time frame is prohibited.
• Debt Collection Harassment: Through the FDCPA, debt collectors are prohibited from using abusive or violent language.

By being a victim through a debt collector’s violation of the FDCPA, a consumer may be entitled to receive statutory damages in an amount of $1,000 that may also include damages for emotional distress.

Join a Free New York Unfair Debt Collection Class Action Lawsuit Investigation

If you live in New York and a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

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DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.