New York Attorney General Letitia James has issued a consumer alert, informing New Yorkers of their rights when contacted by a debt collector.
Consumers facing debt collection now have added protections under federal and state law. New nationwide rules adopted by the Consumer Financial Protection Bureau (CFPB) — that took effect yesterday — limit how and when debt collectors are allowed to contact consumers. These rules also require debt collectors to give consumers detailed information about the origin and history of the debt they seek to collect. Additionally, a new state law — the Consumer Credit Fairness Act, which was signed into law on November 8, 2021 — gives New Yorkers rights when sued in regard to consumer debt.
“New Yorkers have the right to know how much they owe without smoke and mirrors,” said Attorney General James. “No consumer should be sued over a debt they do not legally owe or which a creditor has no right to collect, but as we recover financially from COVID-19, we are seeing more and more debt collectors come out of the woodwork with outrageous claims. These simple tips should help protect our state’s consumers from deceptive and abusive debt collection practices. My office will continue to take the necessary actions to protect New Yorkers’ wallets.”