The New York City Department of Consumer and Worker Protection (DCWP) has once again responded to industry feedback by pushing back the effective date for its new rules affecting debt collectors. This delay follows ongoing requests from the accounts receivable management industry and aims to give everyone more time to adjust to the changes.
On Wednesday, the DCWP announced through the New York City Record that the effective date for the new debt collection rules would now be October 1, 2025, instead of April 1, 2025. This delay pushes back the original date of December 1, 2024.
Along with this delay, it’s expected that the DCWP will take another look at the rules and make some revisions. The agency will reopen the public comment period, allowing industry stakeholders and the public to share their input. This will all happen under the city’s Administrative Procedure Act, which means further opportunities for feedback before the rules are finalized.
Expect Changes
Some of the changes that may be included in the revised rules involve clarifying how debts should be itemized and adjusting requirements for validation notices, especially when it comes to time-barred debts. For instance, the revised rules are likely to specify that a validation notice doesn’t need to be sent if the debt becomes time-barred after the notice has already been issued.
The DCWP may also reconsider what counts as a “debt collector” under these new rules, and whether creditors should be included in that definition. This could have big implications for the industry.
On top of these revisions, the rules are expected to include stronger requirements for record retention and reporting for collection agencies. They’ll also change the procedures for validating and verifying debts, which will likely increase the workload for debt collectors and affect how they interact with consumers.
Stay Tuned
As we get closer to the new October 2025 effective date, debt collectors should stay tuned for more updates from the DCWP. These updates could bring additional changes or clarifications before the rules officially go into effect.
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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.
