The New York City Department of Consumer and Worker Protection has proposed amendments to its debt collection penalty schedule to align with recently adopted rules, and will hold a public hearing on June 1, with written comments due the same day. The proposed changes are intended to incorporate new and modified requirements that will take effect on September 1.
The Department stated that the penalty schedule is being updated to reflect the expanded scope of the debt collection rules and to ensure that all potential violations are captured with corresponding penalty amounts.
Proposed changes
The amendments would rename and update the existing penalty schedule and apply standardized penalties across multiple sections of the rules governing debt collection activity.
Under the proposed amendments:
- Violations of key provisions, including communication practices, validation and verification requirements, and prohibited conduct, would carry monetary penalties.
- Initial violations are generally set at $525, with subsequent violations increasing to $1,050.
- Certain repeated or more serious violations could result in penalties of up to $3,500.
These penalty ranges would apply across multiple rule sections, including:
- Requirements related to acquiring location information
- Communication practices in connection with debt collection
- Prohibitions on harassment, abuse, and deceptive representations
- Use of unfair or unconscionable practices
- Validation notice and verification of debt requirements
- Time-barred debt disclosures
- Medical debt requirements
- Record retention obligations
The penalty table outlining these amounts appears in the proposed rule and reflects updated references to the amended debt collection provisions.
Rulemaking process
The Department issued the proposal as part of its rulemaking authority under the New York City Charter and Administrative Code. A public hearing will be conducted via phone and videoconference, and stakeholders may submit comments through the City’s rulemaking website, by email, or by participating in the hearing.
The proposal follows the Department’s adoption of revised debt collection rules earlier in 2026. The updated penalty schedule is intended to ensure consistency between those rules and the enforcement framework once they become effective.
