Bill > S04271

This bill establishes a comprehensive regulatory framework for licensing and overseeing consumer debt collectors in New York State. It requires consumer debt collectors to obtain a license from the state's superintendent of financial services, which involves a detailed application process that includes background checks, financial responsibility assessments, and the submission of a surety bond. The bill defines key terms like "consumer debt," "consumer debtor," and "consumer debt collector," and sets forth specific rules about debt collection practices, including restrictions on communication methods, times, and frequencies. Licensees must maintain detailed records, submit annual reports, and adhere to strict standards of conduct that prohibit unfair, deceptive, or abusive practices. The legislation empowers the superintendent to investigate, examine, and take enforcement actions against debt collectors, including suspending or revoking licenses, imposing civil penalties, and requiring the removal of problematic employees or contractors. Additionally, the bill includes provisions that nullify judgments obtained by unlicensed debt collectors and places new limitations on judgments by confession. The law will take effect 180 days after passage, with full implementation scheduled for January 1, 2028, giving debt collectors time to prepare for the new regulatory requirements.

Budget and Finance, Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S4271