New York City Drops The Hammer: The Final NYC Collection Rules Start 9/1/26!

The New York City Department of Consumer and Worker Protection has released what is now its final version of its new debt collection rules.

Coming in at 48 pages, the new Rules are currently scheduled to be effective September 1, 2026. But remember, these Rules have been published, delayed and withdrawn several times since 2024, so stay tuned for possible further delays.

Regardless of their effective date, the new Rules will burden NYC collections in the 5 boroughs. Landmines exist and will trip up even the most compliant collection agency. In many circumstances, the Rules also apply to creditors collecting their own debt.

While details are too voluminous for this Blast, new obligations include:

• significantly increasing recordkeeping and retention period requirements;
• new disclosure requirements related to language access services;
• amending the definition of “debt collector” to apply to first-party work (business process outsourcing);
• new rules for contact frequency more restrictive than federal law;
• new restrictions for electronic communications;
• new required disclosures and processes for handling disputes and a comprehensive verification practice;
• greater limits on calls to a consumer’s place of employment;
• modifying the itemization table with additional requirements beyond Reg F;
• new substantive and timing requirements for verifying a disputed debt;
• requiring an expanded itemization of the debt if a consumer disputes any amount of the debt;
• mandating a specific time-barred debt disclosure in all communications that will make collecting such debt virtually impossible; and
• prohibiting the credit reporting of medical debt and requiring a new disclosure on the initial validation notice.

September is less than 200 days away, and like the Reg. F rollout, the new Rules will require increased coordination between debt collectors, debt buyers and original creditors. Time is not our friend here.

Worried about how your NYC collections will need to be revamped? We are here to help!