In a July 25, 2013, press release, Benjamin M. Lawsky, Superintendent of the New York Department of Financial Services (DFS), announced the proposal of regulations touted as "nation-leading reforms to help protect consumers against abusive and deceptive debt collection practices."1 These sweeping reforms are said to be a response to the more than 13,000 consumer complaints about debt collection practices filed by New Yorkers in the last 18 months.2 Such complaints, according to regulators, include debt collectors making harassing phone calls, contacting incorrect people and seeking incorrect amounts.3
The key objectives of the proposed regulations include: 1) creating better disclosures and transparency from the outset of the collection process; 2) protecting consumers against collection of so-called "zombie debts," or debts for which the statute of limitations has expired; 3) verifying that the debt is actually owed, ensuring that consumers are provided with written terms of settlement agreements and written confirmation of satisfaction of the debt; and 4) cutting down on harassing phone calls.4 In short, the goal of the regulations is to "level the playing field for consumers."5
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