New York’s Debt Collection Rules & Regulations

In addition to federal laws, New York City and New York State have their own debt collection rules and regulations. New York State has amended its debt collection regulations to offer more consumer protection. The Consumer Credit Fairness Act was signed into law on November 8, 2021, and provides requirements and prohibitions for debt collection in New York State. The law changes the statute of limitations on lawsuits filed by creditors from six (6) years to three (3) years. Also, making payments on the debt does not restart the statute of limitations. This state law and NYC regulations apply to consumer credit transactions—that is when credit is given to you for money, property, or services, and the transaction is for personal, family, or household purposes. The state law and NYC regulations do not apply to the collection of business debts.

The debt-purchasing industry is growing; however, debt-purchasing companies are notorious for having little to no information about the debts they purchase and try to collect on. Debt buyers often try to collect debts that have already been paid or settled (called “zombie” debts because they don’t go away) or for which the statute of limitations (the time in which the debt buyer must sue you) has long passed. By including the debt buyers in the new law, New York hopes to combat some of these abuses and provide consumers with more information about the debts which are being pursued.

Under New York City’s rules and regulations governing debt collection practices, debt collectors must provide you with certain information either in the initial contact with you, or within five days after that initial contact. The required information includes the following:

1. General information about your rights as a consumer. The debt collector must provide you with a list of the collection activities prohibited by the federal Fair Debt Collection Practices Act (FDCPA). It must also list the types of income that is protected from collection if the collector succeeds in getting a judgment against you.
2. Information about the debt. The debt collector must provide you with information about the identity of the original creditor and an itemized accounting of the debt. A new trend is that certain companies are buying very old debts. You may not have any recollection of what the original debt was for. If the debt collector does not have this information, they will not be able to comply with the new regulations, so they cannot legally collect the debt. The information the debt collector must be able to provide you with includes:
   • The amount of the debt when the original creditor sent it to collection;
   • The amount of interest accrued since the debt was sent to collection;
   • The amount of other fees and charges.
   • The payments you have made since the debt was sent to collection; and
   • The name and address of the debt collector.

3. Information about the statute of limitations. The statute of limitations is the time limit for collection of the debt. Some debts are too old to try to collect under the law that applies to those particular debts. The debt collector must be able to figure out if the statute of limitations has passed. If the debt collector knows, or should know, that the debt is too old to collect, they must do the following:
   • Tell you that the statute of limitations may have expired;
   • Tell you that it is a violation of the federal FDCPA (Fair Debt Collections Practices Act) to sue to collect a debt for which the statute of limitations has expired. (Simply trying to collect the debt without suing, however, is permitted.)
   • Tell you that you do not have to admit to owing the debt, promise to pay the debt, or give up your rights regarding the statute of limitations.
   • Under New York City Rules and Regulations, A New York City consumer may dispute or request a verification of the debt orally, in writing, or electronically (if the debt collector uses electronic communications to collect debt) at any time during the period in which the debt collector owns or has the right to collect the debt.

New York State law allows you to request that the debt collector provide you with information to show that the debt is yours and/or that the amount is correct. The debt collector must provide you with this information within 60 days. By law, the debt collector is not allowed to continue trying to collect the debt until they provide the required information you requested to you.

Also, new New York City regulations are pending that would impose additional requirements on debt collectors—including that they will be required to pause collection activities for 45 days after a consumer disputes a debt, or until the debt collector provides verification that the debt is owed by you and the amount is accurate. A debtor’s failure to provide verification pursuant to the regulations may relieve you of collection activity.

The information the debt collector must provide to you if you dispute the debt in writing includes:

• Any contract or application you signed related to the debt if it is available. If it is not available, then the collector may show a document created by the original creditor (not the debt collector), showing that you owe the debt.
• The statement the original creditor sent to you showing that it planned to charge-off the debt and send it to a debt collector.
• A statement describing how the debt collector acquired your debt from the original creditor.
• Information regarding any prior settlement of the debt.

If you are able to pay the debt, and you and the debt collector agree to a payment schedule or other settlement, the debt collector must provide you with a written confirmation of the agreement within five days. If you and the debt collector agree to a payment plan, you are entitled to quarterly accounting of payments you have made. Once you pay off the debt, the debt collector must give you written confirmation that you paid off the debt within 20 days.

Last Updated November 2025