Radical New York Rule Voids Debts, Restricts Contact Attempts

Radical New York Rule Voids Debts, Restricts Contact Attempts

Radical New York Rule Voids Debts, Restricts Contact Attempts By John K. Rossman The newly enacted New York City Debt Collection SHIELD rule will go into effect September 1, 2026 and it will upend debt collection for both creditors and debt collectors. Significantly, the law provides that a consumer may demand debt verification at any time and if verification is not provided within 60 days, the collector must send a Notice of Unverified Debt and cease collection activity, in essence voiding the debt. The new law further limits debt collection communications to three attempts per week. In the latest episode of "The Debt Collector" podcast, attorneys John Rossman and Ben Kirk break down the key elements of the New York City debt collection rule including circumstances applicable to creditors, the three communication per week limit and numerous exceptions, the new validation notice requirements and the dispute rules which result in the voiding of debts. The show is hosted by Angeline Anderson and it runs about 10 minutes in length. For a copy of the three page Executive Summary of the New York rule discussed in the podcast, contact john.rossman@rossmankirk.com [john.rossman@rossmankirk.com].

"Right to Cure" Trap Snags Debt Collectors

Debt collectors in several jurisdictions are facing claims brought by consumer attorneys asserting that a consumer is not obligated to pay an account where the original creditor failed to provide a statutory "right to cure" notice. Fourteen jurisdictions in the United States require that a creditor provide a statutory right to cure notice to a consumer on a defaulted credit card account. In this first episode of The Debt Collector Podcast, host Angelina Anderson is joined by attorneys John Rossman and Ben Kirk with the law firm of Rossman Kirk, PLLC to discuss the right to cure requirements, recent case law and risks to debt collectors. Importantly, the attorneys identify the 14 jurisdictions that require a right to cure notice and specific strategies for debt collectors to avoid these claims in this audio podcast that is about 8 minutes in length.