At a recent gathering of consumer agencies, the New York City Department of Consumer Affairs (DCA) reported that for the first time in the agency’s 40-year history, debt collectors bumped home improvement contractors from the top of their complaint list last year.
Nationally, third-party and creditor debt collection accounts for almost 9 percent of complaints. In New York State, it’s 13 percent – more than one in eight.
Any business collecting debts from New York City residents must be licensed by DCA and must follow strict guidelines set by New York City Law. Currently, there are approximately 1,100 licensed debt collectors operating in New York City.
“While we encourage New Yorkers to only incur debt they can afford and then pay it off, we also insist that collectors both prove that debt is owed and refrain from harassment,” said Consumer Affairs Commissioner Jonathan Mintz.
Consumer complaints regarding debt collectors generally concern debts consumers do not owe or alleged harassment tactics by the debt collector, like contacting an employer or calling in the middle of the night.
“In tough times like these, Consumer Affairs is more aggressive than ever ensuring businesses are playing fair so consumers are protected,” Mintz said.
Last year, DCA received and investigated more than 7,600 consumer complaints and secured a total of $8.4 million in restitution through the Department’s mediation and enforcement efforts. Of that number, DCA received more than 1,200 complaints against debt collectors, nearly 70 percent more than in (fiscal year) 2007. The department secured more than $2 million in restitution for consumers who filed complaints about debt collectors, 123 percent more than the previous year.
Mintz advised not to ignore any debt collector, but that consumers should make sure they are licensed, and always get the information in writing.
For more information, visit nyc.gov/consumers and click on “Download the Debt Collection Guide,” or call 3-1-1.
