Consumer Protection Law Targets New York Unfair Collection Practices

If you have been a victim of New York unfair collection practices, you could be eligible to participate in a class action lawsuit.

In 2015, New York Governor Andrew Cuomo and the New York Department of Financial Services announced new debt collection regulations. As a result, New York has some of the toughest laws to protect consumers from unethical, abusive debt collectors.

In an effort to reduce New York unfair collection practices, the law clearly outlines what a debt collector can and cannot do.

• A debt collector cannot impersonate a law enforcement officer, a lawyer, or a New York state government official.
• In most cases, the debt collector cannot knowingly collect a collection agency fee or attorney’s fees.
• A debt collector cannot communicate or threaten to communicate information regarding the consumer’s debt to the debtor’s employer unless the debtor has consented to a wage assignment agreement.
• Neither can a debt collector call with such frequency or at such unusual hours that the action would be considered abuse or harassment.
• A debt collector is not allowed to threaten any action that the original creditor would not take in the usual course of business. For example, a debt collector cannot threaten to take your car if you do not make a credit card payment.

Each violation of the law is considered a misdemeanor offense.

Laws Against New York Unfair Collection Practices Add to Federal Laws

The Fair Debt Collection Practices Act (FDCPA) is the federal law enacted in 1978 to protect consumers from unsavory debt collectors.

The FDCPA allows debtors to challenge creditors to determine the validity and accuracy of debts. This provision is particularly important in this age of rampant identity theft.

A consumer can be eligible to receive $1,000 in statutory damages, plus any actual damages suffered, when a debt collector is found guilty of violating the FDCPA.

Among the illegal maneuvers prohibited by the FDCPA:

1. Debtors who notify their debt collectors in writing to stop contacting them should be free of harassing phone calls and other communication from the debt collectors. Abusive or threatening language, communicating about the debt with friends, family or your employer, and calling at improper times are all prohibited as well.
2. Phone Harassment. By law, debt collectors can call debtors between 8:00 am and 9:00 pm, but cannot call repeatedly, intending to harass the debtor. Robocalls are not allowed.
3. False Representation. Debt collectors cannot misrepresent how much money is owed, nor can the debt collector pretend to be a lawyer or a government or law enforcement employee.
4. Attempt to Collect Debts Not Owed. This one sounds like a no-brainer, but a debt collector might try to collect a debt that was discharged in a bankruptcy or even previously settled with the debtor. A victim of identity theft sometimes does not know his identity has been stolen until he is approached by debt collectors seeking money for debts he never incurred.
5. Collection of Old Debts. Most debts that have been in default for more than four years are usually past the statute of limitations.
6. Improper Reports Sent to Credit Reporting Agencies. Some lenders unlawfully report debts that have been discharged in a bankruptcy to the credit agencies even though the lenders can no longer attempt to collect on those debts. Sometimes, debt collectors do not notify credit reporting agencies that the consumer has filed a dispute regarding a debt.
7. Inappropriate Communication with Third Parties. A debt collector is prohibited from contacting a debtor’s family members, employers, or neighbors in regards to debt collection.

If you reside in the state of New York and you have been the victim of New York unfair collection practices, you could have a legal claim and be eligible for compensation.

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.