Recent amendments to NYC’s debt collection rules impose new requirements relating to consumers’ language proficiency. Following an overview, we take a close look at the specific requirements and their applicability to first- and third-party collections, discuss the DCA’s authority, availability of federal preemption, and compliance challenges, and offer thoughts on best compliance practices.
Debt Collection
Industry trade groups send letter to NYC DCA proposing FAQs and related extension of effective date of debt collection language proficiency requirements
By Stefanie Jackman on
Posted in Debt Collection, Regulatory and Enforcement
Several industry trade groups have sent a letter to the New York City Department of Consumer Affairs (DCA) in which they set forth proposed FAQs to assist compliance with the new requirements relating to consumers’ language proficiency that were recently added to NYC’s existing debt collection regulations and request that the effective date of the…
Enforcement grace period expected for amendments to New York City debt collection regulations adding language proficiency requirements
By Stefanie Jackman on
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…
Seventh Circuit rules debt collector entitled to summary judgment where plaintiff failed to produce evidence that collection letter would be misleading to “a substantial fraction of the population”
By Stefanie Jackman on
Posted in Debt Collection, Litigation and Court Decisions
In a recent decision, Johnson v. Enhanced Recovery Company, LLC, the U.S. Court of Appeals for the Seventh Circuit affirmed the district court’s grant of summary judgment in favor of a debt collector based on the plaintiff’s failure to present any evidence beyond her own “speculation” that a debt collection letter was misleading in…
New York City amends debt collection regulations to include language proficiency requirements
New debt collection rules creating requirements relating to consumers’ language proficiency are set to take effect in New York City on June 27, 2020. The new rules amend NYC’s existing debt collection regulations applicable to creditors collecting their own debts as well as third-party collection agencies. Accordingly, the new rules appear to have implications for…
CA federal district court rules debt collector’s use of email to send initial communication containing validation notice did not violate FDCPA
By Stefanie Jackman on
Posted in Debt Collection, Regulatory and Enforcement
In a recent decision, a California federal district court ruled that a debt collector’s use of email to send the initial communication containing the validation notice without first obtaining the plaintiff’s consent to receive the notice electronically under the E-SIGN Act did not violate the FDCPA.
The FDCPA requires a debt collector to provide the…
This week’s podcast: CARES Act Economic Impact Payments for individuals and Paycheck Protection Program loans for small businesses: are they subject to garnishment or setoff?
By Barbara S. Mishkin on
We look at the impact of federal and state law including relevant CARES Act provisions, state garnishment directives, and federal preemption, identify issues banks should consider in handling garnishments or exercising setoff rights, and offer suggestions for mitigation measures banks can take as they decide how to address the challenges in this area.
Federal court grants TRO in trade group lawsuit challenging Massachusetts emergency debt collection regulation
By Stefanie Jackman on
A Massachusetts federal district court has entered a temporary restraining order that blocks the state’s attorney general from enforcing the prohibitions on initiating lawsuits and making collection calls in the AG’s emergency debt collection regulation promulgated on March 26. The TRO was sought by ACA International, the Association of Credit and Collection Professionals, in its…
Trade group files lawsuit challenging Massachusetts emergency debt collection regulation
By Stefanie Jackman on
Posted in Debt Collection, Regulatory and Enforcement
ACA International, the Association of Credit and Collection Professionals, has filed a lawsuit in Massachusetts seeking to have the federal district court declare the emergency debt collection regulation promulgated on March 26 by the MA Attorney General invalid and enjoining the AG from enforcing the regulation against debt collectors and creditors. In addition to filing…
District of Columbia enacts emergency debt collection law in response to COVID-19 pandemic; Massachusetts AG issues guidance on emergency debt collection regulation
By Stefanie Jackman on
On April 7, the District of Columbia passed the COVID-19 Response Supplemental Emergency and Temporary Amendment Act of 2020 which goes into effect immediately and lasts until 60 days after the emergency ends. The law prohibits debt collectors from initiating any communication with a debtor through any written or electronic communication, including email or text…