DCWP Finalizes Amendments to Debt Collection Rules 

Key Changes in the Amended Rules 

Revised Definitions and Applicability  – The DCWP revised several definitions to clarify the applicability of the rules. Notably, the department added language explicitly referencing “original creditors” to confirm that the rules apply to original creditors who attempt to collect a debt after events that constitute “debt collection procedures.” 

The department also clarified when the requirements of Section 5-77 apply. Section 5-77 now specifies that any person, including an original creditor, who meets the definition of a “debt collector” must comply with its requirements when engaged in debt collection procedures. This clarification addresses prior ambiguity regarding which entities fall within the rule’s scope. 

Communication Frequency Cap Adjustments – The amended rules modify the communication frequency cap for debt collectors handling multiple debts for the same consumer. 

Under Section 5-77(b)(1)(iii), debt collectors are permitted up to three communications per distinct account — rather than per consumer — over a seven-day period. This change reflects feedback regarding how communication limits apply when multiple accounts are involved. 

Expanded Recordkeeping Requirements – Debt collectors must now maintain detailed monthly logs of: 

• Consumer complaints 

• Disputes 

• Requests for verification 

• Requests to cease communication 

Compliance records must be retained from the beginning of collection activity until three years after the last collection activity on the debt. This represents a significant extension of record retention obligations. 

Electronic Communication Updates –The amendments streamline the process for obtaining consumer consent for electronic communications. The rules remove the prior requirement that a debt collector obtain oral consent before sending an electronic message. Instead, consumers are provided revocable consent to use electronic communications. 

The rules also clarify that a consumer’s request to stop electronic communications applies only to that specific medium. For example, replying “stop” to a text message ends text communications but does not automatically revoke consent for other communication channels. 

The DCWP noted that while many consumers may prefer electronic communication, the goal is to ensure that each New York City consumer can choose their preferred method of communication.