The federal government has the responsibility to provide protection for its citizens. In light of such a mandate, there are federal laws protecting borrowers from unfair and harassing treatment at the hands of debt collectors who are attempting to collect past due and default account payments for another. Those laws are best represented by the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. Many states also have additional laws reinforcing or expanding on those statutes. For most consumers, however, there are options for relieving and negotiating debt issues with the help of an attorney before they reach collection agencies.
New York is one of the states that reinforces and applies federal debt collection laws to protect its citizens from harassment and abuse. They also have enacted state laws expanding on those protections for the citizens of New York state. Any abuses of those laws are addressed by the New York office of the Attorney General or a local district attorney.
While New York state follows all of the federal laws concerning debt collection protection, it also expands on those laws, applying them not only to debt collection agents and agencies, but to principal creditors, as well. In addition, while the state does not require licensing of debt collection agencies, some cities do, especially New York City. Abuses of these laws are misdemeanours in the state and carry penalties for each offense. They should be reported to the office of the state Attorney General or the local district attorney.
Creditors and debt collection agents or agencies are authorized to pursue the payment of any debt, which is in arrears, or default according to the terms of the original contract.
Harassment is illegal under both New York state and federal laws. In New York, the penalty for harassment by a debt collection agent or agency is a misdemeanour.
There are alternatives for borrowers who have fallen behind in their payments other than facing debt collection agencies. One option is allowing a debt negotiation settlement or negotiation company to represent the borrower to their creditor or collection agency. However, this can hold many avenues of abuse for unscrupulous companies.
It is often a better option to choose an attorney skilled in these functions to protect the debtor from such abuses as:
There are many opportunities for abuse when debtors have fallen behind or are in default of loan payments. They are often at the mercy of creditors or debt collection agencies with few resources to protect themselves. An attorney can provide the protection these consumers need and represent them when they have been abused, helping restore their name, their financial status, and their credit rating.