ACA International has reported that after discussions last week with the New York City Department of Consumer Affairs (DCA), the DCA is expected to announce a 60-day enforcement grace period for the new requirements relating to consumers’ language proficiency that were recently added to NYC’s existing debt collection regulations.  The new requirements currently are set to take effect on June 27, 2020.

NYC’s existing debt collection regulations apply to creditors collecting their own debts, as well as third-party collection agencies.  Accordingly, several of the new requirements appear to have implications for creditors and debt collectors alike with respect to any collection activities involving NYC consumers.  To satisfy the new requirements, “debt collectors” (defined to include both creditors and collection agencies) must request, record, and retain, to the extent reasonably possible, a record of the language preference of each consumer from whom the debt collector attempts to collect a debt.