New York City’s Department of Consumer and Worker Protection (DCWP) recently provided an overview of the city’s debt collection SHIELD Rule, which will take effect Jan. 1, 2027. The Oct. 5 webinar addressed questions from the receivables management industry regarding disclosure requirements, communication practices, and other compliance considerations.
During the webinar, DCWP staff discussed the scope of the SHIELD Rule, key definitions, core compliance requirements, and several specialized topics, including medical debt, credit reporting, and record retention.
Scope of the SHIELD Rule
According to DCWP staff, the SHIELD Rule will govern debt collection activity conducted on New York City consumer accounts on or after Jan. 1, 2027, when a debt collector is engaged in debt collection procedures.
The rule specifically excludes routine business billing. DCWP staff clarified that day-to-day business transactions, billing activities, and customer service practices are not subject to the SHIELD Rule.
Similarly, furnishing information on accounts that are not in collections is not subject to the rule.
The SHIELD Rule applies to debt collection activity taking place on or after Jan. 1, 2027.
Industry Questions Addressed
The webinar also addressed a number of questions previously submitted by industry participants. Topics included:
- Validation notice templates
- Limits on the frequency of communications with consumers
- Disputes
- Record retention requirements
- Consumers’ language preferences
- Medical debt
- Credit reporting
The discussion provided additional insight into how DCWP expects regulated entities to approach compliance as the effective date approaches.
Webinar and Recording
DCWP held its webinar on the SHIELD Rule on Oct. 5, 2026. The webinar was available through the DCWP webinar registration page, with a livestream provided through DCWP’s Facebook page.
Once the livestream recording is available, DCWP has indicated that it will be posted on the DCWP Business Toolbox under the Debt Collector section.
With the SHIELD Rule scheduled to take effect at the beginning of 2027, debt collectors handling New York City consumer accounts may want to review the rule’s requirements and evaluate their current policies, procedures, communications, and compliance systems ahead of the implementation date.
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.
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