For Immediate Release:
October 11, 2018

Department of Consumer Affairs Settles Investigation with Debt Collection Agency for Using Illegal Collection Letters

NEW YORK, NY – Department of Consumer Affairs (DCA) Commissioner Lorelei Salas today announced a settlement with Enhanced Recovery Company, LLC, a licensed debt collection agency that sent illegal collection letters to tens of thousands of New Yorkers. The settlement resolves DCA’s findings that the debt collection agency failed to include information required by law on their collection letters, including the name of the agency and the name of a live contact to whom the consumer could speak. DCA investigated Enhanced Recovery Company as part of a proactive investigative initiative of debt collection agencies and their practices.

The agreement requires Enhanced Recovery Company to pay a $105,000 fine to resolve the investigation, and to develop, implement, and monitor written policies to ensure compliance with the settlement agreement and all applicable DCA regulations. The written policies must address training and compliance across all languages in which the agency collects.

“For many years, debt collection was DCA’s top complaint category and though the number of complaints has started to decline, we know that New Yorkers are still struggling with debt and continue to be contacted by debt collectors,” said DCA Commissioner Lorelei Salas. “Even in the absence of complaints, DCA will continue its oversight of this industry to ensure debt collectors are following the law, which is why we are proactively investigating a number of agencies like Enhanced Recovery. We also encourage New Yorkers to get our tips when a debt collector contacts them and to contact us if their rights are violated, including consumers who have been contacted by Enhanced Recovery.”

Anyone seeking to collect debts from New Yorkers must be licensed by DCA, which currently licenses nearly 1,600 debt collection agencies. Last year, DCA received just under 400 complaints about debt collectors, often about debts the consumer doesn’t believe they owe. DCA encourages anyone who is contacted by a debt collector to download our Debt Collection Guide so they know their rights, as well as what a debt collector can and cannot do. DCA also encourages people who feel they’ve been taken advantage of to file a complaint at or by calling 311. Since 2013, DCA has secured more than $1.5 million in restitution for consumers and issued $4.6 million in fines related to debt collection agencies.

DCA also encourages anyone struggling with debt to visit an NYC Financial Empowerment Center for free, one-on-one financial counseling. Since 2008, the Centers have helped more than 51,000 New Yorkers improve their financial health and reduce their debt by almost $63.7 million and increase their savings by more than $5 million. New Yorkers can book a free and confidential appointment with a professional financial counselor by calling 311, visiting, or texting TalkMoney to 42033 (message and data rates may apply; check with your service provider).

The matter was handled by Senior Staff Counsel Alexandra Pinilla, under the supervision of Associate General Counsel Adam Blumenkrantz, of the General Counsel Division, which is led by General Counsel Tamala Boyd and Deputy General Counsel Michael Tiger.

The NYC Department of Consumer Affairs (DCA) protects and enhances the daily economic lives of New Yorkers to create thriving communities. DCA licenses more than 81,000 businesses in more than 50 industries and enforces key consumer protection, licensing, and workplace laws that apply to countless more. By supporting businesses through equitable enforcement and access to resources and, by helping to resolve complaints, DCA protects the marketplace from predatory practices and strives to create a culture of compliance. Through its community outreach and the work of its offices of Financial Empowerment and Labor Policy & Standards, DCA empowers consumers and working families by providing the tools and resources they need to be educated consumers and to achieve financial health and work-life balance. DCA also conducts research and advocates for public policy that furthers its work to support New York City’s communities. For more information about DCA and its work, call 311 or visit DCA at or on its social media sites, Twitter, Facebook, Instagram and YouTube.

Media Contacts:
Gloria Chin / Christine Gianakis
Department of Consumer Affairs
(212) 436-0042

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  • Always make sure the debt collector is licensed by the New York City Department of Consumer Affairs.
    Debt collection agencies must include their DCA license number in all letters sent to you. To verify if a debt collection agency is licensed, call 311 or search DCA’s Instant License Check, available online at
  • Never ignore a debt collector, even if you do not recognize the debt.
    If you do not recognize the debt, or question whether the debt is legitimate, write a letter to the debt collection company asking for verification of the debt within 30 days of receipt of the letter from the debt collection agency. 
  • Check that the debt collection agency provided required information.
    By law, debt collection agencies must provide the following information in all communications to you:
    • The name of the debt collection agency;
    • The name of the original creditor;
    • The amount of the debt;
    • And a call-back number to a phone that is answered by a live person and the name of that person. If your call is routed from the agency’s main telephone line, the live person qualified to handle your questions must answer the call within 60 seconds.
  • Make sure the debt collector sends you validation of the debt especially if the first collection attempt is by phone.
    Validation must include:
    • The name of the original creditor;
    • The amount of the debt;
    • And information about your right to dispute the debt.
    The debt collection agency must send you validation within five (5) days of contacting you.
  • Confirm all agreements to resolve a debt in writing.
  • Check how old the debt is.
    If the statute of limitations on the debt is expired, the collector must disclose this information to you, along with information about your legal rights. The statute of limitations is the period of time that a creditor or collector can sue you in court to collect the debt. The statute of limitations is generally six years on credit card debt.

A debt collection agency may not make false statements, including:

  • Claim that it represents a government agency, such as a marshal, sheriff, or District Attorney’s Office;
  • Threaten that you will be arrested;
  • Threaten that it will report you to immigration authorities;
  • Claim that you have committed a crime;
  • Threaten that it will have you evicted, take or garnish your wages;
  • Or take the money from your bank account, or take your personal belongings without first obtaining a judgment against you in court.

A debt collection agency may not:

  • Engage in acts of violence, threats of violence, or obscene language;
  • Claim the debt owed is greater than it is;
  • Claim you owe the debt when you do not;
  • Claim you can be sued if the statute of limitations expired;
  • Call you before 8 AM or after 9 PM or more than twice a week if the collector has made contact with you;
  • Advertise a debt or reveal it to anyone, including family members and neighbors;
  • Or contact your employer, family, friends, and neighbors for any reason other than to locate you. Collectors cannot discuss the alleged debt with anyone other than you.