The new regulations will provide much-needed governance of an industry that has gone largely unregulated despite thousands of consumer complaints each year, said Superintendent of Financial Services Benjamin Lawsky on Tuesday.
“The debt collection industry is filled with far too many unscrupulous actors willing to deceive and abuse consumers just to make a quick buck,” said Lawsky.
The new rules will require debt collectors produce a court judgment or actual loan document. They will also have to show an accounting of all interest and fees included in the debt, and inform customers when the statute of limitations has expired.
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