NYDFS Bares its Teeth, Files its First Enforcement Action Against Debt Collector

Yesterday, the New York Department of Financial Services (NYDFS) announced that it filed its first enforcement action against a debt collector under New York's Debt Collection Regulations. NYDFS brought its statement of charges against Forster & Garbus for allegedly violating the state's substantiation of debt requirements.

New York's debt collection regulations require that, upon a consumer's request, debt collectors provide certain documents to the consumer within 60 days in order to substantiate the debt. The statement of charges alleges that in certain instances, the debt collector failed to provide substantiation, or provided insufficient substantiation to comply with the regulation's specific requirements.

Certain examples include:

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