A debt collector only needs to provide the disclosure required in 23 NYCRR 1.3 before accepting any payment on a debt in which the statute of limitation is expired, but not in every non-collection communication. Debt servicers who collect or attempt to collect a debt that was not in default at the time it was obtained for collection are not considered debt collectors for the purposes of 23 NYCRR 1, and are not subject to the regulation. A. Does 23 NYCRR 1 apply to debt servicers, including companies that service student loans, home equity loans or mortgages? March is just a few months away, so if you need help conducting an assessment of your business security or meeting the requirements of 23 NYCRR 500 before March 1, 2018, please contact us and we'll reach out as soon as possible! Chapter I - Fish and Wildlife (Parts 1-189) Chapter II - Lands and Forests (Parts 190-199) Chapter III- Air Resources (Parts 200-317) Chapter IV- Quality Services (Parts 320-492) Chapter V - Resource Management Services (Parts 500-614) Chapter VI - General Regulations (Parts 615-624) If the debt collector provides the notice required in 23 NYCRR 1.3 before accepting payment on a debt where the statute of limitations has expired, must the debt collector provide this notice in every subsequent communication or before accepting every subsequent payment? A. Part 10. The accounting should include information typically found on an account statement such as interest and fees and how payments may be allocated between principal and other charges. The 23 NYCRR Part 500 is a regulation designed by the New York State Department of Financial Services (DFS) to promote costumer’s information IT system security of regulated entities. If you cannot access a title due to high traffic on the site please wait a few minutes, refresh and try again. 1601 et seq., and debt collectors should look to applicability of that law for guidance on who is considered a “debt collector” for purposes of the regulation. As long as the consumer receives the accounting no less frequently than on a quarterly basis, the timing of the quarters may begin from the date of the agreement or on a calendar quarter basis. On November 14, 2014, the Superintendent of Financial Services adopted 23 NYCRR 1, a regulation to reform debt collection practices by debt collectors, including third-party debt collectors and debt buyers. A. No. Is a debt originated by a seller of a good or service sold directly to the consumer subject to 23 NYCRR 1? (i) serving, filing, or conveying formal legal pleadings, discovery requests, judgments or other documents pursuant to the applicable rules of civil procedure; (ii) communicating in, or at the direction of, a court of law or in depositions or settlement conferences or other communications in connection with a pending legal action to collect a debt on behalf of a client; or. REGULATIONS OF THE SUPERINTENDENT OF FINANCIAL SERVICES, PART 1. A. What happens if the debt collector cannot substantiate the debt within 60 days but does so thereafter? A. Debt collectors can provide a single disclosure by using language required by the NYCDCA and including any additional information required in 23 NYCRR 1.3 that is not covered by the NYCDCA language. (a) Within five business days of agreeing to a debt payment schedule or other agreement to settle a debt, a debt collector shall provide the consumer with: (1) a written confirmation of the debt payment schedule or other agreement to settle the debt. G.B.L., sections 352-eee. Moving forward, per Section 500.17, covered entities are required to notify the NYDFS Superintendent within 72 hours of a Cybersecurity Event. Debt collectors must provide an accounting of the debt on “at least a quarterly basis while the consumer is making scheduled payments” on a payment plan. Some sections of 23 NYCRR 1 apply only to debts that have been charged-off, and others apply to any debt. For example, 23 NYCRR 1.2(a) requires certain initial disclosures in connection with collection of all debts, and 23 NYCRR 1.2(b) requires certain disclosures only with respect to the collection of charged-off debts. The required disclosure may indicate that the value of a required field is “0” or explain that charges, fees or interest are not applicable or will not be charged, or a similar statement, if accurate. Does the definition of debt include tort claims or utility bills? Would providing consumers a monthly account statement fulfill the requirements of 23 NYCRR 1.5(b)? 23 NYCRR 1 does not apply to any debt originated out of a transaction wherein credit has been provided by a seller of goods or services directly to a consumer exclusively for the purpose of enabling the consumer to purchase consumer goods or services directly from the seller. Debt collectors should consider factors such as the prominence of the disclosure, the proximity to related information, whether the disclosure is likely to be seen, and whether the information is readable and understandable. Ensure that you're compliant or get there with this guide. Failure to provide the required information within 60 days of receipt of the request for substantiation is a violation of the rule enforceable by the Department. For the purposes of this Part: (a) Charge-off means the accounting action taken by an original creditor to remove a debt obligation from its financial statements by treating it … A. Any opaque protective coating use on ladders is prohibited and all ladders must be maintained or replaced if necessary. A. The Public Employee Safety and Health Bureau (PESH), created in 1980, enforces safety and health standards promulgated under the United States Occupational Safety and Health Act (OSHA) and several state standards. Does “clear and conspicuous” disclosure of required information mean that information must be provided on the front page of a mailing? The NY DFS Cyber security Regulation (23 NYCRR 500) is a new set of regulations from the NY Department of Financial Services (NYDFS) that places new cyber security requirements on all covered financial institutions. A. In this blog, we take a look at New York’s law – 23 NYCRR 500 – that has a high impact on the financial, banking and insurance industries in the U.S. On March 1, 2017, the state of New York rolled out the 23 NYCRR 500 regulation, a law that demands financial companies implement a detailed framework to better protect consumer data privacy. A. A. and . Effective March 1, 2017, the Superintendent of Financial Services promulgated 23 NYCRR Part 500, a regulation establishing cybersecurity requirements for financial services companies. If a specific timeline in the regulation refers to “days” and not “business days,” does this mean that the requirement refers to “calendar days”? Debt collectors who do not own the debt and therefore cannot extinguish the debt can avoid potential violations by ensuring that the debt can be substantiated before commencing collections or receiving assurance from the creditor that the debt can be extinguished if substantiation is requested but cannot be provided. The required statement must clearly and conspicuously show the amount the consumer owes under the payment plan or settlement agreement. Once a debt collector has provided substantiation of the debt, the debt collector does not need to provide any further information about how to request substantiation of the debt. If a debt collector has provided a consumer with substantiation of an alleged debt, does the debt collector need to provide information about how to request substantiation after any subsequent disputes about the debt? For example, 23 NYCRR 1.2(a) requires certain initial disclosures in connection with collection of all debts, and 23 NYCRR 1.2(b) requires certain disclosures only with respect to the collection of charged-off debts. Yes, a debt collector may have the original creditor provide the required information. § 1692 et seq. The following provides answers to frequently asked questions concerning 23 NYCRR Part 500. The 23 Titles include one for each state department, one for miscellaneous agencies and one for the Judiciary. If a debt collector is treating a dispute as a request for substantiation and stops collection, the debt collector does not need to provide the consumer instructions on how to request substantiation. A. Yes. (1) If any nonpurchasing residential tenant may be evicted by application of the provisions of . Debt servicers who are assigned defaulted debts to collect on behalf of creditors are subject to the rule unless a different exemption applies. Advances in digital technology have put data at the center of commerce and public services. A. 23 NYCRR 500 Regulation Background. The debt collector only needs to provide the disclosure in 23 NYCRR 1.2(b) if the debt collector’s initial communication with the consumer in connection with the collection of the debt occurs when the debt is charged-off. However, the debt collector, who received the request is still responsible for ensuring that the information is provided within the time frame required by the rule. A. No. The accounting should be useful to indicate what the consumer paid in the prior period and what is still owed. A. (a) In compliance with subdivisions 3 and 13 of section 359-e of the General Business Law (GBL § 359-e), The Department and the New York City Department of Consumer Affairs (“NYCDCA”) both require disclosures concerning the statute of limitations. “Clear and conspicuous” is a fact-specific standard. No. 500.1 General Requirements. If the debt collector is subject to the NYCDCA rules, are both disclosures required? Is a bank an original creditor if the bank purchases a portfolio of debts from another bank? A debt collector should send required notices to the attorney of record representing a consumer for the purposes of the debt. Yes. However, the rules only apply to companies “engaged in a business the principal purpose of which is the collection of any debts, or any person who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.” Those circumstances may not apply to a bank. 1 (Unofficial) TEXT OF REVISED REGULATIONS 13 N.Y.C.R.R. A debt collector cannot satisfy the obligation to provide substantiation by returning the debt to the creditor. Accessibility & Reasonable Accommodations. The applicability of 23 NYCRR 1.2(b) depends on the status of the debt when a debt collector makes its initial communication with the consumer. The industrial code outlines the various requirements for ladders, single ladders, extension and sectional ladders, stepladders, and ladderways. Contact us today by phone at 212-867-5786 or by email at mike@pospislaw.com – we'd love to hear from you. The Department and the NYCDCA rules both specify information to be sent to a consumer within five days of the initial communication with a consumer in connection with the collection of any debt. Supervision by DFS may entail chartering, licensing, registration requirements, examination, and more. Terms used below have the meanings assigned to them in 23 NYCRR 500.01. For example, Sections 2(b) and 4 pertain only to the collection of charged-off debts, which typically is not germane to the collection of mortgage debt but could be germane to the collection of student loan debt. Market demands for sharing data, connecting devices and accessing remote networks have improved services and productivity, but also opened up new risks to individuals and organizations. Overview of the requirements of 23 NYCRR 500; What you'll need to become compliant - people, process, and technology It is currently the most comprehensive cybersecurity regulation in the US. No. If the bank acquires another bank and its debts, it remains the original creditor pursuant to the rules. A. NEW YORK’S CYBERSECURITY REGULATION: A PRACTICAL GUIDE 23 NYCRR Part 500 (the “Regulation”) is a much anticipated regulation of the New York Department of Financial Services (“DFS”), which took effect March 1, 2017. A. If a consumer is represented by an attorney for purposes of the debt, should the debt collector send the required notices to the attorney of record or to the consumer directly? The debt collector is not required to include the total balance due if there was no payment plan or settlement agreement, but may include such information. Once substantiation is furnished, a debt collector may begin collecting, even if substantiation is provided after the required 60-day period. 352-eeee, rent regulatory laws, or after expiration of a lease term, the cover shall contain the following statement in boldface roman type at least as large as eight-point modern type and at least two points leaded: A. In the itemized accounting required by 23 NYCRR 1.2(b)(2), if there is no interest accrued, charges or fees added, or payments made on the debt since charge-off, must a debt collector include those fields indicating “0” or if appropriate “Not Applicable”? The New York State Department of Financial Services (“DFS”) has been closely monitoring the ever-growing threat posed to information and financial systems by … 23 NYCRR 1.3 requires debt collectors to provide certain information about the statute of limitations. If the statute of limitations has not restarted following acceptance of a payment, then the disclosures must be made again before accepting further payment. The rules were released on February 16th, 2017 after two rounds of feedback from industry and the public. At this time, the Department is focused on collection of debts owed or alleged to be owed by New Yorkers, which is the intended scope of the rule. 6 NYCRR Chapter Index: New York's Environmental Regulations. 23 NYCRR 500 – NYS DFS Cybersecurity Regulation Getting Started Compliance Guide On March 1st of this year, the Department of Financial Services put out “first-in-the-nation” cybersecurity regulation due to the increase of consistency and sophistication of cyber attacks over recent years. However, the notices differ in some respects. 23 CRR-NY 1.1 1.1 Definitions. All members of the financial services industry in New York fall under this latest work to secure end customer data. Understand 23 NYCRR 500 in simple terms. The Office of Court Administration and the Judiciary are exempt from SAPA requirements. On March 1, 2017, New York issued the 23 NYCRR Part 500 guideline, a regulation that demands financial firms to execute a thorough framework to better safeguard the data privacy of their consumers. The ladder h… A New York civil litigation blog, brought to you by Pospis Law, PLLC. In order to assist debt collectors in complying with these rules, the New York State Department of Financial Services (the “Department”) is providing answers to frequently asked questions below. Data breach reports continue to demonstrate how cybercriminals can cause significant financial losses for organizations, for members of the public a… Yes, debt collectors must include all the information required in 23 NYCRR 1.2(b)(2) in a clear and conspicuous manner. By limiting the requirement in 23 NYCRR 1.5 to payment arrangements reached “pursuant to Section 1.5 of this Part” does this section only require debt collectors to provide written confirmation of payment arrangements entered into after the enactment of the DFS rules? A. (iii) collecting on or enforcing a money judgment. While other debt collection laws and regulations may apply to the collection of money judgments, 23 NYCRR 1 does not apply when debt collectors are collecting on a money judgment. This additional information would include that: suing on a debt for which the statute of limitations has expired is a violation of the Fair Debt Collection Practices Act, 15 U.S.C. The NYCRR primarily contains state agency rules and regulations adopted under the State Administrative Procedure Act (SAPA). May a debt collector combine a disclosure required by the FDCPA and a disclosure required in 23 NYCRR 1 in one communication? A monthly accounting would meet this requirement. The debt remains exempt from 23 NYCRR 1 even if it is sold to a new creditor or given to a third-party debt collector. The financial services industry is a significant target of cybersecurity threats. Facts could necessitate that a disclosure be on the front page of a communication by a debt collector, but not necessarily in every case. (1) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor; (2) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts; (3) any officer or employee of the United States or any state to the extent that collecting or attempting to collect any debt is in the performance of his or her official duties; (4) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt; (5) any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; (6) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity: (i) is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which was originated by such person; (iii) concerns a debt which was not in default at the time it was obtained by such person; or, (iv) concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor; and. If a collector already has been collecting on the charged-off debt, the communication following the effective date 23 NYCRR 1.2(b) would not be the initial communication. Much of the definition of debt collector in 23 NYCRR 1 parallels the federal Fair Debt Collection Practices Act, 15 U.S.C. A. Amended December 23, 2015 effective April 1, 2016 Section 210.14-a Proof of Default Judgment in Consumer Credit Matters (Uniform Civil Rules for the City Courts Outside the … 1 NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES 23 NYCRR 201 REGISTRATION REQUIREMENTS & PROHIBITED PRACTICES FOR CREDIT REPORTING AGENCIES I, Maria T. Vullo, Superintendent of Financial Services, pursuant to the authority granted by sections 102, The on-line version of the NYCRR is intended to provide the public with free access to the rules and regulations of New York State agencies. New York Codes Rules and Regulations consists of 23 titles. If a debt collector treats a dispute, either oral or written, as a request for substantiation, must the debt collector inform the consumer of the method by which the consumer may request substantiation? A. A. 1 NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES 23 NYCRR 500 CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES I, Maria T. Vullo, Superintendent of Financial Services, pursuant to the authority granted by sections 102, 201, 202, 301, 302 and 408 of the Financial Services Law, do hereby promulgate Part 500 of Title 23 of the If the debt collector is subject to the NYCDCA rules, are both disclosures required when collecting a debt? For ladders, the ladder itself must meet the strength guidelines provided by the labor code, allowing for at least four times the maximum load intended without breaking, loosening, or dislodging. The rule requires “records reflecting the amount and date of any prior settlement agreement,” not original documents or each account statement. Does 23 NYCRR 1 apply to collection of a money judgment? What information should be included in the accountings required in 23 NYCRR 1.5(b)? While debt servicers who are assigned defaulted debts may be subject to 23 NYCRR 1, certain sections of the regulation do not apply to all types of debts, particularly types of debts that servicers may collect on. There are just four weeks left until March 1, 2019, the deadline for the final clause of the 23 NYCRR 500 (NYDFS Cybersecurity Regulation): “Third Party Providers: Written Policy and Procedure” (§500.11).The first clauses of the 23 NYCRR 500 took effect on March 1, 2017. DEBT COLLECTION BY THIRD-PARTY DEBT COLLECTORS AND DEBT BUYERS. 23 NYCRR 1 only applies to obligations or alleged obligations of a consumer for the payment of money or its equivalent which arise out of a transaction wherein credit has been extended to a consumer. No. A. 1 [23 NYCRR Part 500 (Financial Services Law)] Cybersecurity Requirements for Financial Services Companies . Does 23 NYCRR 1 apply to debts that have not been charged-off? If a debt collector and consumer agree to a debt payment plan that would satisfy the debt at less than the total amount due, do statements provided to the consumer making payments pursuant to the payment plan need to include the total balance due as if there was no settlement agreement? 2 . § 10.1 Registration of securities broker-dealers, issuers, and salespersons; effective date All forms referenced in this Part are viewable at https://ag.ny.gov/forms. The total could have actually been $1 billion had the perpetrators not made a typo in one of their fraudulent transfer requests, which brought the operation to a halt. If the debt collector has been communicating with a consumer and the debt is charged-off after the initial communication, that debt collector does not need to provide the disclosure in 23 NYCRR 1.2(b) to continue collecting on the debt. Yes, disclosures may be provided in the same communication as long as a disclosure required pursuant to 23 NYCRR 1 is provided within the required time frame and, taking into account other information being provided, is presented in a clear and conspicuous manner.
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