Debt
Collection
Guide
Have you heard from a debt collector?
Here are some facts you should know.
If you owe money, you are legally obligated to pay.
Failure to pay off debts can lead to a poor credit his-
tory. Your access to further credit will be cut off. More
debt makes it harder to pay off past and current bills
at the same time.
A creditor has the right to contact you to collect out-
standing debts. Some employ the services of a debt
collection agency to press for the money owed.
Sometimes these agencies violate the law.
New York City law prohibits harassment or abuse
by collectors. All debt collection agencies that seek
to collect debts from New York City residents must
be licensed by the Department of Consumer Affairs
(DCA). All debt collection agencies must comply with
the City’s Consumer Protection Law and rules en-
acted by DCA, or risk suspension or revocation of
their licenses by DCA.
Say you owe money. Sometimes a debt collector
may pull dirty tricks to intimidate you into paying off.
Collectors are not entitled to cross the line between
lawful collection practices and menacing intimidation.
The City’s debt collection law provides the strongest
anti-harassment protection in the country. It covers
debt collection agencies and companies’ in-house
collection departments in their efforts to collect
outstanding debts for clients.
• Engaging in acts of violence, threats of violence or
obscene language.
• Making false statements, including misrepresenting
the character or status of the debt, and stating that
nonpayment will lead to the collector seizing your
wages, unless the seizure is lawful and the
creditors intend to pursue such action.
• Calling a debtor at an inconvenient or unusual
time, particularly before 8 AM or after 9 PM, or
more than twice a week.
• Advertising a debt or revealing it to another person.
• Contacting your employer for any reason other
than to locate you. This also applies to contacts
with neighbors, family, and friends. Creditors and
debt coll