Any business collecting
debts from New York City residents must be licensed by the Department of
Consumer Affairs (DCA). DCA protects consumers from unlawful and abusive debt
collection practices.
What to do when you receive a debt
collection notice:
Make sure the debt collector is
licensed. You can check if an agency is licensed using DCA's
Instant License Check or call 311.
IF YOU ARE NOT SURE THE DEBT IS
VALID, TAKE THESE STEPS:
Act quickly.You must dispute a debt
within 30 days of receiving notice. After 30 days if the debt is not disputed,
a collection agency is entitled to treat the debt as valid and pursue it
further.
Send by certified mail a letter to the collection
agency requesting proof of the original debt/purchase and
creditor.Debt collectors cannot pursue you further until they provide
the requested proof. Once proof of the original debt has been provided, the
agency can seek to collect it.
IF YOU DO NOT OWE THE DEBT, TAKE THESE
STEPS:
Act quickly.You must dispute a debt
within 30 days of receiving notice. After 30 days if the debt is not disputed,
a collection agency is entitled to treat the debt as valid and pursue it
further.
Send by certified mail a letter to the collection
agency requesting that it cease contacting you about the alleged
debt.After receiving a cease collection letter, a collection agency
is only authorized to contact you once more, in writing, to inform you of any
further legal action it intends to pursue. At the same time, consumers should
warn the collection agency in writing by certified mail against falsely
reporting the debt to anyone else.
IF THE DEBT IS VALID, TAKE THESE
STEPS:
Do not ignore the debt collector.Failure
to pay a debt or respond could hurt your credit rating and your ability to
obtain loans, mortgages, or other financial services.
If you do not want the collection agency to
continue contacting you, send by certified mail a letter requesting that it
cease contacting you about the alleged debt.After receiving a cease
collection letter, a collection agency is only authorized to contact you once
more, in writing, to inform you of any further legal action it intends to
pursue. If you choose this option, the creditor can sue, report you to a
credit agency, and take other lawful actions to pursue the debt.
Calculate your finances and figure out your
ability to repay the debt.There is a good chance the collector will
work out a repayment plan with you. If so, be sure to get the terms of the
agreement in writing.
Ask the debt collection agency to send you
written confirmation that the debt has been paid in full or resolved.
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