DCWP Announces the Nation's Strongest Consumer Protection Rules Against Predatory Debt Collection

February 26, 2026

New York City’s New SHIELD Rule Institutes a Strong Communications Restriction, Expands Consumers’ Dispute and Verification Rights, and Offers First-of-its-kind Protections for Collection of Medical Debt

NEW YORK, NY – The New York City Department of Consumer and Worker Protection (DCWP) today announced the publication of new debt collector rules that provide New Yorkers with the strongest protections in the country against debt collector harassment. The Stopping Harassment and Intimidation and Ensuring Lawful Debt (SHIELD) Collection Rule goes beyond federal rules (Fair Debt Collection Practices Act and Regulation F) by allowing New Yorkers to dispute their debt at any time, further limiting the number of times debt collectors can contact individuals, and delivering first-of-its-kind protections related to the collection of medical debt.

“As the cost of living skyrockets and the federal government turns its back on working people, the SHIELD Rule protects New Yorkers from harassment, arms them with new rights to dispute debts, and cracks down on collecting illegal medical debt,” said DCWP Commissioner Sam Levine. “New Yorkers deserve nothing less than the strongest protections in the nation, and that is what we are delivering.”

The SHIELD Rule includes the following protections, which go into effect September 1, 2026: 

Cap on Communications: Protects consumers against incessant calls and texts from debt collectors, limiting collectors to three attempts within seven days.

Disputing Debt: Consumers will now be able to dispute a debt at any point during the collection process, and in any mode of communication they have been using to communicate with the debt collector.

Verification of Debt: Debt collectors must verify a debt and provide underlying documentation showing the validity of the debt after a consumer disputes a debt or asks for verification of that debt. Debt collectors have to provide documentation within 60 days of the consumer request, and if not, must send the consumer a Notice of Unverified Debt. After that 60 days, third party debt collectors and debt buyers lose their ability to collect on that debt.

Medical Debt:Consumers are provided additional dispute rights when disputing medical debt. Debt collectors acting on debt belonging to a hospital must inform the consumer about and promote the medical facility’s financial assistance policy at all phases of the collection process.

“New York City's new debt collection rule goes above and beyond federal law to protect consumers from aggressive debt collection tactics,” said Adam Rust, director of financial services for the Consumer Federation of America. “The SHIELD rule requires debt collectors to prove that debts are actually legitimate, provide prompt responses to disputes, and advise consumers about hospital financial assistance programs. At a time when the cost of living is rising, more places should follow New York City's lead to ensure no one is coerced into paying debts they do not owe.”

“New York’s City’s SHIELD Rule will protect New Yorkers from being unfairly hounded by debt collectors by imposing strict requirements for verification of all debts,” said Chuck Bell, Advocacy Programs Director for Consumer Reports. “Consumers will have much stronger rights to contest debts they do not owe at any stage during collection, and must be informed about hospital financial assistance programs they can use to pay off medical debts. Consumer Reports applauds New York City for creating these vital ground rules to ensure all city residents are treated fairly.”

“Our recent research shows that a growing number of New Yorkers are relying on credit cards just to cover essential expenses like groceries, rent, and utilities. When everyday necessities are financed with high-interest debt, families are only one missed paycheck or medical bill away from collections.” said David R. Jones, President and CEO, Community Service Society of New York. “The SHIELD Rule recognizes this reality. By limiting harassment, strengthening dispute rights, and creating new protections around medical debt, New York City is stepping in to protect households who are already financially stretched thin.”

“As the federal government rolls back critical consumer protections, it is empowering to see DCWP not only step in to fill that void, but to expand safeguards for individuals and families against one of the most notorious wealth-extracting industries: debt collectors,” said Elizabeth M. Lynch, Director of Economic Equities at The Legal Aid Society. “These strengthened protections are essential to defending our clients from abusive practices that destabilize households and strip communities of hard-earned income. At The Legal Aid Society, we see every day how aggressive debt collection harms New Yorkers, and we applaud DCWP for taking meaningful action to protect those most at risk.”

“Far too often, vulnerable New Yorkers are harassed and harangued by aggressive debt collectors for debt they might not even owe. Understandably, many New Yorkers do not understand their rights or even how to fight back,” said Mary McCune, a senior staff attorney at Legal Services NYC. “We applaud the New York City Department of Consumer and Worker Protection for instituting this new rule which will go a long way in protecting New Yorkers against harassment and create much-needed accountability for debt collectors.”

“Abusive debt collection practices have long plagued New Yorkers and disproportionately impact people of color,” said Carolyn E. Coffey, Director of Litigation for Economic Justice at Mobilization for Justice. “We applaud DCWP for leading the way with rules that set a higher standard of accountability for third-party debt collectors and creditors to curb these abuses in New York City.”

“Abusive debt collection is the top issue we hear about on our free financial justice hotline for low-income New Yorkers,” said Susan Shin, Legal Director at New Economy Project. “These abuses are concentrated in communities of color and reflect a financial system and economy predicated on extraction. We applaud Commissioner Levine and DCWP for adopting robust rules that will help protect New Yorkers’ wages and bank accounts from debt collectors’ overreach—an essential step in addressing our city’s deepening affordability crisis.”

"Common debt collector harassment includes unfair and abusive calls, emails, and texts to consumers to collect debt that actually is not owed,” said Christine Hines, senior policy director at the National Association of Consumer Advocates. “DCWP's new rule strengthens New Yorkers' rights and requires debt collectors to show proper evidence to verify debt upon request.”

“New Yorkers deserve strong protections against aggressive and illegal debt collection. The SHIELD Rule sets a national standard by giving consumers clear rights to dispute debts, limiting harassing communications, and addressing the unique harms of medical debt collection,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud at the National Consumers League. “We applaud New York City for taking bold action to put consumers first and protect families from predatory practices.”

“With the new SHIELD Rule, New York City is once again leading the nation on consumer protection and economic justice,” said Winston Berkman-Breen, Protect Borrowers Legal Director. “No one should ever be subject to harassing collection calls or be forced to pay a debt that they don’t owe. By covering original creditors and addressing issues like the collection of time-barred debt, this rule reflects a zero-tolerance approach to abusive debt collection practices. We applaud Mayor Mamdani and Commissioner Levine and the DCWP staff for their hard work to protect New Yorkers. We encourage other local governments to follow suit!”

Debt Collector Harassment

In recent years, there has been an upward trend of consumer complaints about excessive debt collector communication and harassment. Complaints from New York City consumers to the CFPB about this issue have increased each year since 2021 when Regulation F was implemented. In fact, the CFPB received more than three times the number of complaints about this issue during the 12-month period beginning December 1, 2024, compared to the 12-month period beginning December 1, 2021.

This significant uptick indicates that debt collectors continue to engage in aggressive communication tactics that harm a growing number of consumers. Additionally, New York City consumers should reach out to DCWP, if they believe they are being harassed by a debt collector, have collectors reaching out after being told to cease, or who believe that they are being pursued for debt that does not belong to them, should file a complaint at nyc.gov/Consumer or by calling 311.

Rulemaking Process

The SHIELD Rule addresses the comments DCWP received via the rulemaking process from the debt collection industry, the financial services industry, and consumer advocates, as well as concerns conveyed to DCWP after its previous rulemaking on debt collection in 2024.

The SHIELD Rule covers original creditors like financial institutions and hospitals when they collect on their own debt, but does not regulate these institutions’ ongoing, day-to-day business interactions with their customers. Also, the Rule exempt financial institutions who are that are subject to the Fair Credit Billing Act (“FCBA”) from the Rule’ validation and verification requirements.

NYC Consumer Debt

Since 2022, DCWP’s Financial Empowerment Centers have helped tens of thousands of New Yorkers improve their credit, reduce their debt by more than $49.7 million, and increase their savings by $5.9 million through free one-on-one financial counseling services. There are over 45 centers across the five boroughs with services available in 11 languages. New Yorkers 18 and older can visit DCWP’s Financial Counseling webpage or call 311 and say “financial counseling” to schedule an appointment or for more information.

The NYC Department of Consumer and Worker Protection (DCWP) is the nation’s leading municipal enforcement agency charged with delivering economic justice. DCWP leverages its authority to bring New Yorkers real economic relief and protect them from predatory, deceptive, and unfair practices that violate their rights as consumers and workers. This includes pioneering cutting-edge protections, such as the City’s Consumer Protection Law, Protected Time Off Law, Fair Workweek Law, and Delivery Worker Laws, including the Minimum Pay Rate for delivery workers. Through licensing more than 45,000 businesses in over 45 industries, DCWP ensures fair competition and a level playing field for responsible small businesses that are integral to New York City’s vibrant communities. DCWP also provides essential services such as free tax preparation and financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures. DCWP is committed to making sure New York City is a fairer, more affordable place to live. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp, sign up for its newsletter, or follow on its social media sites, X, Facebook, Instagram, and YouTube.

Media Contact:
Stephany Vasquez Sanchez
Department of Consumer and Worker Protection
(212) 436-0042
press@dcwp.nyc.gov