The Attorney General of New York last week sent letters to “major” debt collectors operating in her state, making sure that those companies were aware of new regulations that have recently gone into effect, such as Regulation F from the Consumer Financial Protection Bureau and new state-mandated large-print disclosures, while also reminding them of changes to the statute of limitations that are going into effect next week.
A copy of the letter can be accessed by clicking here.
Starting April 7, the statute of limitations on consumer debt is being reduced to three years, and that period can not be restarted if a partial payment is made once the statute of limitations has expired. The letter reminded collectors that when sending validation notices related to debts where the statute of limitations has expired, that information must be disclosed.
Debt collectors must also advise consumers if a debt is due to become time-barred when the new regulation goes into effect on April 7, the AG told the recipients of her letter.
The letter also sought to remind collectors of new disclosures that will be required when filing collection lawsuits against consumers starting May 7. Complaints must include an itemization of the debt and include more information about the chain of ownership, including providing a copy of the original contract on which the debt is based. Collectors must also start using a more comprehensive notice that is provided to the clerk of the court and subsequently passed on to consumers, and must use a new form when filing for summary judgments.
Finally, the letter requested information regarding how the companies are complying with Regulation F and the new large-print disclosures.
