Debt Collection Compliance New York

It is interesting to see the compliance framework for debt collection evolve in other jurisdictions that operate in similar economies to ours.

In New York, regulators have put new provisions in place that require debt collectors to give a notice that is; "clear and conspicuous written notification" that advises a debt collection is prohibited from engaging in "abusive, deceptive, and unfair debt collection efforts". Another notice requires debt collectors to formally advise debtors in writing what what income may be protected (ie Centrelink income in Australia) once they have obtained Judgment. These notice goes beyond the requirements of the Fair Debt Collection Practices Act (similar to the ASIC and ACCC Debt Collection Guidelines).

Another notification is required once a debt is statute barred that advises the debtor that any legal action taken thereafter is a breach of law and that the debtor does not need to provide any admission that the debt is owed.

Oral requests for proof of debt must now be acted on, previously written notification had to be provided.

We can compare these changes brought about by the National Credit Code, and how oral hardship requests must now be acted on by lenders.