The New York City Department of Consumer and Worker Protection (DCWP) will hold a public hearing on proposed amendments to its debt collection penalty schedule on June 1. The hearing will focus on updates to penalties for violations under the city’s debt collection rules.
The adopted debt collection rules are scheduled to take effect Sept. 1, 2026, and include new and revised compliance requirements for debt collectors.
According to the DCWP’s public hearing notice, the proposed updates to the penalty schedule are intended to “ensure accuracy and so that all potential violations are captured and included with relevant penalty amounts.”
Stakeholders may submit comments on the proposal through June 1 by emailing rulecomments@dcwp.nyc.gov or through the DCWP’s website.
The public hearing is scheduled from 11 a.m. to noon ET on June 1.
Background on the Rule Amendments
The DCWP adopted significant amendments to its debt collection rules in February 2026. The agency stated that the changes are intended to modernize consumer protections in New York City while clarifying how the rules apply to different types of debt collectors, including original creditors that engage in collection activity.
The rulemaking process has included several delays following feedback from industry stakeholders and other interested parties. Discussions surrounding the amendments have focused on alignment with federal and state regulations, operational impacts on businesses, and consumer communication preferences.
Stakeholder comments submitted during the rulemaking process have addressed several issues, including:
- Alignment with federal debt collection regulations
- Data-driven support for proposed changes
- Consumer preferences for electronic and modern communication methods
- Record retention requirements
- Definitions related to debt collectors
- Itemization reference date requirements
- Rules governing communication at a consumer’s place of employment
- Validation notice requirements and electronic delivery options
Expanded Compliance and Reporting Requirements
According to the DCWP, the amendments are designed to substantially expand existing record retention and reporting requirements for collection agencies. The rules also revise validation and verification procedures used during the debt collection process.
In addition, the rules would require debt collectors to inform consumers about available language access services.
In its February 2026 rule adoption notice, the DCWP stated that the changes are intended to “clarify the intent and applicability of recently adopted amendments.”
Industry stakeholders have continued to provide feedback on the rules and have suggested that additional revisions may still be necessary to better align the requirements with existing federal standards while balancing operational requirements and consumer protections.
Next Steps
The June 1 public hearing and comment period represent the next phase in the DCWP’s ongoing implementation of its revised debt collection framework. The final penalty schedule updates will help determine how violations of the new rules will be enforced once the regulations take effect later this year.
Author: Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
