New York, NY – Bloomberg Tightens Rules for Debt Collectors

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    New York, NY – The Bloomberg administration announced new rules on Monday that are intended to change the way debt collectors operate by making sure they are going after the right people.

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    The new rules require collection agencies to provide consumers with the equivalent of an “original receipt” of the debt, proving the ownership and including an itemized list of accrued interest and any additional fees, said Jonathan B. Mintz, the city’s consumer affairs commissioner.

    Until now, licensed collection agencies equipped with a list of debtors could contact anyone in New York City whose name appeared on a debtor list, regardless of whether that person owed money or not. The new rules, the commissioner said, will force original creditors to keep paperwork documenting a debt, who owes it, how old it is and whether it is still owed under the statutes of limitations. Debt collectors have recently been criticized by some judges for their tactics, and for the lack of documentation supporting their claims.

    “Let’s say that one of the names on their list is Michael Bloomberg,” Mayor Michael R. Bloomberg said at a news conference held by the Northern Manhattan Improvement Corporation. “They quickly find people with that name all across the tristate area.”

    A 2009 change to the city’s administrative code regarding debt collectors allows the city simply to impose the new rules within the five boroughs, officials said.

    One key to improving the debt collection system for New Yorkers, however, is getting consumers to work with debt collection agencies.

    New Yorkers frustrated by automated calls from collection agencies, or harassment for debts they do not owe, are also newly entitled to speak with an agent within 60 seconds of returning a call to a collection company.

    The Bloomberg administration is not planning any public news media campaign to inform people of the upgraded rules, but it encourages New Yorkers to dial 311 if they are receiving harassing phone calls or need help managing their debt.


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    4 Comments
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    Anonymous
    Anonymous
    13 years ago

    Nothing is going to help you. by the end of the day you pay back each buck you used.

    Hi there,
    Hi there,
    13 years ago

    good idea,
    my hub name is the same name as someone i know that owes tons of money to cc. i keep on getting his calls and go thru headache for nothing….
    another issue i keep on getting advertising phone calls and i am under the do not call list…..what am i suppose to do, maser them? this is totally unfair it rings at least ten times a day or not more…..

    Allan
    Allan
    13 years ago

    It is my understanding that there already is a Federal law is place that debt collectors must shown proof of the original debt and their ownership of that debt. My credit history and rating is excellent. Several years ago I was contacted by a collection agency that aquired the only open debt on my record. This debt was the result of a dispute between myself and the retail chain I purchased from. The retain chain went out of business and their open acccounts were sold to a collection agency that then contacted me via mail. My reply to this long written off debt was “show me the proof of my original purchase”. Their response was to write back that the issue was now closed. They had no proof and also the time limit for that original debt had expired…it was all a bluff to get me to pay what I never really owed.

    time limit?
    time limit?
    13 years ago

    what is the time limit for a debt?