NYDFS Proposes Amendments to Debt Collection Regulation

On October 29, the New York Department of Financial Services issued proposed amendments to 23 NYCRR 1, its regulation titled “Debt Collection by Third-Party Debt Collectors and Debt Buyers.”  The proposed amendments would make significant changes to the sections of the current regulation dealing with initial disclosure requirements, statute of limitations disclosures, substantiation requirements, and telephone and electronic communications.  They would also align the DFS regulation with several of the CFPB’s requirements in Regulation F.  Regulation F is set to become effective on November 30, 2021.

Required initial disclosures by debt collectors

23 NYCRR 1 currently requires debt collectors to provide certain written information, within five days of the initial communication (unless the initial communication was in writing and included the notice).  The proposed amendments revise the information about the debt that must be included in the initial disclosures.  They require a debt collector to disclose:

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