Debts & Debt Collection

Problems with debt and credit reports can affect many parts of your life. Errors on a credit report may make it harder to get a loan, rent an apartment, or qualify for lower interest rates. A credit dispute lawyer can help you understand your rights, challenge inaccurate information, and take steps to protect your credit and financial future. 

What Do Debt & Debt Collection Laws Cover?  

Debt and debt collection laws cover: the creation of debts; disputes regarding payment of debts; reporting of debt on credit reports; and the methods of collecting on unpaid debts. If you use credit cards, owe money on a personal loan, or are paying a home mortgage, you are considered a “debtor.” The most common types of debt are credit card debt, car loans, student loans, and home loans.  

There are laws that protect you as a debtor during the various steps of the process. For instance, the “Truth in Lending Act” protects you when you are entering into a credit agreement by making sure the lender fully discloses all the details of the transaction. There are laws, like the Fair Credit Billing Act, that protect you when you have a dispute with a creditor regarding billing on your account. 

How Can Debt Collectors Try to Collect the Debts You Owe?  

If you cannot pay your debts, creditors and debt collectors have a number of ways to try to collect on debts you may owe them. They may be able to:  

• record a lien against your property 
• levy upon your bank account 
• garnish your wages 
• repossess your car or other personal property. 

What Protections Are Available Against Debt Collection Abuses and Unfair Practices? 

In March 2015, the New York Department of Financial Services enacted new regulations that offer some of the strongest protections in the country against debt collection abuses and unfair practices.  

Sometimes, a creditor may think a debt belongs to you, but it actually belongs to someone else.  This often happens in situations involving identity theft. Identity theft is a crime in which another person steals your name, social security number, or other personal identification information and then opens credit accounts, uses your existing credit accounts, or uses your identity to obtain other benefits. Steps must then be taken to clear your good name and restore your credit history as a result. 

Effective September 2026, the Department of Consumer and Worker Protection (DCWP) has implemented the Stopping Harassment and Intimidation and Ensuring Lawful Debt Collection Rule (the SHIELD “Rule”). The Rule provides more protections for consumers and stricter rules on debt collectors. For example, the Rule allows consumers to choose when or how the debt collector can communicate with you and the option for language translation services. It provides time limits for debt verification and may even allow debts to become uncollectible if specific requirements are not met. Some steps consumers should take to receive protection under the Rule include saving all communications with the debt collector, keeping a log of calls and call details, and disputing the debt in writing. There are other steps consumers can and should take as the new Rule provides many benefits that you should contact a lawyer to discuss. 

What Does a Credit Dispute Attorney Do? 

A credit dispute lawyer helps people deal with problems involving credit reports, debt collection, and identity theft. If a credit bureau reports inaccurate information or a debt collector uses unfair practices, a lawyer can explain your rights and help you take action to correct the problem.  

A lawyer may help review your credit reports, communicate with credit reporting agencies, gather evidence, and file disputes. If a company fails to follow state or federal law, a lawyer can help you seek legal remedies and protect your credit score. 

Do You Need a Credit Dispute Attorney in New York City? 

You may benefit from legal help if your credit report contains errors that are hurting your credit score or if inaccurate information remains on your report after you have filed a dispute. Legal assistance may also be important if you are dealing with identity theft or being contacted about a debt that does not belong to you. 

A lawyer can also help if debt collectors are harassing you, making threats, or using unfair debt collection practices. Getting help early may prevent additional financial problems and help protect your rights under state and federal law. 

Understanding Your Rights Under the Fair Credit Reporting Act (FCRA) 

The Fair Debt Collection Practices Act (FDCPA) controls what a debt collector can and cannot do when trying to collect the debt. The Fair Debt Collection Practices Act is a federal law enacted to control the debt collection process and protect debtors from abusive conduct by debt collectors.  The FDCPA does this by imposing harsh financial penalties on debt collectors that violate the Act.  Aside from the FDCPA, there are other federal and state laws that prevent a creditor or debt collector from abusing the debt collection process or intimidating or harassing debtors into paying a debt. 

How the Credit Dispute Process Works 

1. Review your credit reports. Carefully check your reports for mistakes, such as incorrect account balances, debts that do not belong to you, or outdated information. 
2. Gather supporting documents. Save records that show the information is wrong. These may include billing statements, payment records, letters, or identity theft reports.  
3. File a dispute. Send a written dispute to the credit reporting agency and provide copies of supporting documents. The agency should investigate the claim.  
4. Review the results. After the investigation, the credit reporting agency will notify you of its findings and whether changes were made to your credit report. 
5. Consider legal action if necessary. If errors are not corrected or your rights have been violated, a lawyer can help you understand your legal options. 

What Happens If Credit Reporting Agencies Violate the Law? 

Credit reporting agencies are required to follow certain legal requirements when handling disputes and maintaining credit reports. If they fail to investigate disputes, correct errors, or comply with the law, they may be held responsible for the harm caused to consumers.  

In some situations, individuals may be able to take legal action and seek compensation for losses related to inaccurate credit reporting. A lawyer can review the facts of your case and determine whether legal remedies may be available. 

Can You Sue for Credit Report Errors in New York? 

Yes. In some cases, you may be able to sue when a credit reporting agency or another company fails to correct inaccurate information on your credit report or otherwise violates the law. Whether a lawsuit is appropriate depends on the facts of your situation and the steps that have already been taken to dispute the error. 

A successful claim may help you recover damages related to financial losses or other harm caused by incorrect reporting. A lawyer can explain your rights and help determine the best course of action. 

Speak With a Trusted New York City Credit Dispute Attorney 

Credit report errors, identity theft, and debt collection problems can be stressful, but you do not have to handle them alone. Understanding your rights is often the first step toward protecting your credit and resolving the issue. 

The New York City Bar Legal Referral Service can connect you with an experienced credit dispute lawyer. Contact us today to schedule a consultation and learn how a credit dispute lawyer can help. 

Legal Editors: Richard Klass and C. Jaye Berger, August 2015 (updated August 2026)