New York City Hit With Lawsuit Over Debt Collection Rule (1)

New York City’s rule placing limits on how how debt collectors communicate with consumers and attempt to collect debt violates the Constitution and is preempted by federal and state law, a debt collection trade group said.

The August rule from the city’s Department of Consumer and Worker Protection expanded requirements for companies collecting debt from New York City residents to notify them about time-barred debt and medical debt, among a host of other changes.

But provisions in the rule limiting the frequency of contact with consumers, restricting electronic communications, and requiring detailed record-keeping and disclosures violate debt collectors’ free speech ...