New York City Department of Consumer and Worker Protection Proposes Amendments to its Definition Of "Debt Collector"

In November 2024, the New York City Department of Consumer and Worker Protection (DCWP) proposed additional amendments to its rules relating to debt collectors to clarify the definition of a "debt collector."

According to the DCWP, the proposed amendments clarify that the definition of "debt collector" under the proposed rules will continue to include those collecting debts they originated. The amendments also update the effective date of the previously adopted rules.

The DCWP had previously proposed amendments to its rules relating to debt collectors in November 2022, which were not finalized. The DCWP re-noticed proposed amendments to its rules in September 2023 and held a public hearing on the proposed rules in November 2023.

Thereafter, the DCWP revised its proposed amendments to the rule and, on August 12, 2024, published a Notice of Adoption of Final Rule (Notice of Adoption), originally effective December 1, 2024. In November 2024, the DCWP published a Notice of Change of Effective Date, changing the effective date of the amendments from December 1, 2024, to April 1, 2025.

In the "Statement of Basis and Purpose of Proposed Rules" for the proposed amendments, the DCWP states that since the Notice of Adoption, it has become aware of confusion regarding whether the revised definition of "debt collector" still applies to those collecting on their own debts.

According to the DCWP, "the Department has always intended that its rules apply to collectors collecting on their own debts," its "rules have never included an exception for debt collection activity that concerns a debt which was originated by the collector," and the proposed amendments "clarify that the term ‘debt collector’ continues to apply to such original creditors."

The DCWP is holding a public hearing on December 12, 2024, at 11:00 a.m. to discuss the proposed amendments and take comments. Written comments are due on or before December 12, 2024.