Debt Collection Laws in New York: Know Your Rights
New York residents have strong protections against debt collectors under the CCFA and DCL. The statute of limitations for most debts is just three years, giving you a powerful defense. If you're sued, respond immediately and consider raising affirmative defenses to protect your rights.
Answer Your LawsuitNew York residents being hounded by debt collectors have powerful protections. State and federal laws shield you from unfair, abusive, and deceptive debt collection practices.
You don’t have to face aggressive collectors alone. Understanding your rights gives you the power to fight back.
Sued by a Debt Collector in New York?
Don't let debt collectors win by default. Respond to your lawsuit within the deadline and raise powerful defenses like statute of limitations. Our partner Solo makes it easy to file your Answer.
Respond to Lawsuit NowConsumer Credit Fairness Act Explained
In 2014, New York passed the Consumer Credit Fairness Act (CCFA). The CCFA strengthens protections for consumers dealing with overly-aggressive debt collectors.
The CCFA features a consumer-centric notice requirement that all debt collectors must follow:
- Notices must be bilingual (English and Spanish)
- Notices must include a statement about filing an answer immediately
- Notices must provide hyperlinks to New York Law Help and NYCourts.gov
- Notices must explain the consequences of not responding to the lawsuit
The CCFA Significantly Impacts the Statute of Limitations
The CCFA made a major change to New York’s statute of limitations. The statute of limitations sets a legal time limit for collectors to sue.
The CCFA reduced the statute of limitations from six years to three years. More consumers can now dismiss lawsuits as “time-barred.”
If the statute of limitations expires, you can get the lawsuit dismissed. The debt collector simply waited too long to sue.
Statute of Limitations on Debt in New York
| Debt Type | Deadline |
|---|---|
| Credit card | 3 years |
| Medical | 3 years |
| Student loan | 3 years |
| Auto loan | 3 years |
| Personal loan | 3 years |
| Mortgage | 6 years |
| Judgment | 20 years |
The CCFA also addresses a major deception tactic. Collectors used to trick consumers into restarting the statute of limitations through partial payments.
The CCFA now prohibits collectors from restarting the statute of limitations when you make a payment. You’re protected from this manipulative practice.
Key Provisions in New York’s Debt Collection Practices Act
New York’s Debt Collection Practices Act (DCL) provides additional protections. The DCL governs how debt collectors operate in New York.
Harassment and Abuse
The DCL prohibits debt collectors from harassment, oppression, or abuse. Collectors cannot use threats, obscenities, or offensive language.
Collectors cannot make repeated phone calls to annoy or harass you. If they do, you can take legal action.
False or Misleading Representations
Debt collectors cannot make false or misleading statements. They cannot falsely claim to be attorneys or government agents.
Collectors cannot misrepresent the amount or legal status of the debt. They must provide accurate information about what you owe.
Required Disclosures
The DCL requires debt collectors to provide specific disclosures. They must inform you of your right to dispute the debt.
Collectors must state that information obtained will be used for debt collection. They must provide clear information about the debt and creditor’s contact information.
Prohibition of Unfair Practices
The DCL prohibits unfair practices that cause harm or deception. Collectors cannot publish your name in connection with the debt.
Collectors cannot contact you at unusual or inconvenient times. They cannot misrepresent the legal status of your debt.
You Have Rights as a Debtor in New York
As a debtor in New York, you have specific legal rights. Understanding these rights protects you from unlawful collection practices.
- Right to Validation of Debt: You can request proof that you owe the debt. The collector must provide validation within five days of your request.
- Right to Dispute the Debt: You can dispute the debt in writing. The collector must investigate and stop collection activities until resolved.
- Right to Cease and Desist Communications: You can request that collectors stop contacting you. Send a written cease and desist letter to end communications.
- Right to Protection from Harassment: Collectors cannot harass, threaten, or abuse you. Document any harassment and report it to authorities.
- Right to Legal Action: You can sue collectors who violate your rights. File a complaint with the New York State Department of Financial Services.
If a debt collector violates your rights, our partner Solo can help you respond and defend yourself in court.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) is a federal law governing debt collectors. The FDCPA prohibits abusive, deceptive, or unfair practices.
The FDCPA bans harassment, false statements, and threats. You can sue collectors who violate the FDCPA.
Respond to a Debt Lawsuit in New York
If you’re sued by a debt collector, you must respond. Failing to respond results in a default judgment against you.
Consider raising affirmative defenses in your response. Common defenses include statute of limitations and lack of standing.
Our partner Solo can help you draft and file your answer. You can respond quickly and protect your rights.
Settle Your Debt in New York
Debt collectors have the right to sue if you don’t communicate. However, not all debt lawsuits have merit.
You can often settle your debt for less than you owe. In a debt settlement, you offer a portion of the total amount due.
Creditors typically accept at least 60% of the debt’s value. In exchange for a lump-sum payment, they drop legal claims against you.
Get settlement terms in writing before you pay. Pay the creditor before your court date to avoid judgment.
Working with a professional can guide you through the settlement process. Our partner Solo offers SoloSettle, a tech-based approach to debt settlement.
SoloSettle helps you send and receive settlement offers until you reach an agreement. The platform manages documentation and transfers payment securely.