New rules from the New York City Department of Consumer and Worker Protection are the strongest protections in the nation against debt collector harassment, officials said.
In a press release, the DCWP said its new Stopping Harassment and Intimidation and Ensuring Lawful Debt (SHIELD) Collection Rule goes beyond federal rules to protect consumers and allows New York City residents to dispute their debt at any time. The new rules also limit the number of times debt collectors can contact individuals and provide first-of-its-kind protections related to medical debt collection.
“As the cost of living skyrockets and the federal government turns its back on working people, the SHIELD Rule protects New Yorkers from harassment, arms them with new rights to dispute debts, and cracks down on collecting illegal medical debt,” DCWP Commissioner Sam Levine said. “New Yorkers deserve nothing less than the strongest protections in the nation, and that is what we are delivering.”
The new regulations put a cap on communications limited to three attempts within seven days, allows consumers to dispute a debt at any point during the collection process, and requires debt collectors to verify a debt and provide underlying documentation if a consumer asks for it. In cases of medical debt, the new regulations require the debt collector to inform the consumer about and promote the medical facility’s financial assistance policy through all of the phases of the collection process.
“New York City’s new debt collection rule goes above and beyond federal law to protect consumers from aggressive debt collection tactics,” Adam Rust, director of financial services for the Consumer Federation of America, said. “The SHIELD rule requires debt collectors to prove that debts are actually legitimate, provide prompt responses to disputes, and advise consumers about hospital financial assistance programs. At a time when the cost of living is rising, more places should follow New York City’s lead to ensure no one is coerced into paying debts they do not owe.”
The SHIELD Rule will into effect Sept. 1, 2026.