Key points of new language preference law for New York debt collectors

The department of consumer and worker protections of New York City has come up with novel regulations. These new rules require the debt collections agency in NYC to give the customers' language preference disclosures. Also, they have to record and request the language preference of the consumer. Under these new rules, a debt collector in New York doesn't have to translate communication.

Here are the key points of this new rule.

1. New written disclosures

The existing laws state that a debt collector who is not working with a creditor has to make written disclosures to the customer. It can either be through the initial written communication, or they have to disclose this within five days of making contact with the debtor.

The new rules change this more in two ways:

The notice now has to include an announcement informing the customer of the availability of any language access service.

It also needs to state that description and translation of common debt collection words will be available on the website of the department in multiple languages. 

2. Recording and requesting language preference

The new rule also makes it impossible for the debt collection firms to start the collection procedures without requesting the language preference from the debtor. They also need to record the preference before they can start collecting.

The problem with this point is that there are no guidelines. So, a collector is not sure what to do if a debtor doesn’t respond to the request. Do they continue asking or start the process after one or two tries?

Although, the department has assured that more updates on this point will be available soon on the site.

3. Disclosures on the website that are public

A debt collection agency in New York operating a public website, which anyone can access has to follow a rule. The law states that the collectors have to disclose everything they state in the initially written communications. 

4. Partial or false translations

If a debt collector is providing translation services, it would be illegal to convey a translation which is incorrect, false, or partial. Since, the rules don’t define ‘translation services’, if a debt collector is providing these services, they have to bear the risks too.

Another thing to remember here is that New York defines collection agencies, debt collectors, and creditors differently. A collector is a person who is working for the creditor to collect the debt, so these rules don’t affect them. But an individual or firm collecting on their own is an agency that needs to follow these new regulations.

What are your thoughts on these new debt collections for New York jurisdiction? What affects will it have on debtors and collectors alike? Share your thoughts below.