ARM Industry Continues Efforts to Clarify New York City Rules

http://www.insidearm.com/news/00038806-arm-industry-continues-efforts-to-clarify/

ACA International members recently received a compliance alert that provided background information on the enactment of final rules in New York City affecting debt collection agencies that collect from consumers residing in New York City.

In the spring of 2009, the New York City Council passed Local Law No. 15, which significantly amended licensing and debt collection requirements for debt collectors and asset buyers operating in New York City. The Department of Consumer Affairs subsequently issued proposed rules implementing Local Law No. 15. However, these rules were not officially enacted published in the New York City register until late March 2010.

Specific information about the final rules and Local Law No. 15 is available here.

All trade associations, including ACA International, DBA International, NARCA and the Commercial Lawyers Conference of New York (CLC), have been communicating with the New York City Department of Consumer Affairs. ACA and DBA sent an initial letter last week and sent a follow-up letter after meeting via conference call with the Department on Monday.

Our efforts are two-fold. First, many of the new requirements under the final rules take considerable time to implement. For example, the new rules require debt collection agencies to record telephone calls with consumers. Obtaining and implementing a call recording system is no easy task, and agencies need sufficient time to implement new practices to comply with the rules. As a result, we are seeking a delay of enforcement from the Department to permit all agencies sufficient time to undertake good faith compliance efforts.

Second, ACA’s Compliance Department has received a significant number of compliance questions related to the final rules as well as Local Law No. 15. We have requested the Department provide guidance as to how agencies can comply with certain requirements.

At this time we are waiting for the Department to respond to a formal request addressing the above two issues. Please continue to visit ACA’s Web site for any future updates.