New York debt collection law
New York adds four layers to the federal laws. GBL 349 lets you sue any business for a deceptive practice, including an original creditor. The state's DFS rule and New York City's DCWP rules impose extra duties on collectors. And since April 7, 2022, a creditor or debt buyer has three years to sue you on most consumer credit debts, and a later payment does not restart that clock.
Federal law sets the floor. New York builds on it more than most states do, and much of what it adds is aimed at the collection lawsuit itself, the case a creditor or debt buyer files against you in the Civil Court of the City of New York or a court upstate. This page covers the state statute consumers sue under, the collection statute the state enforces, the two sets of collector rules, and the Consumer Credit Fairness Act. The federal FDCPA applies in New York as everywhere.
GBL 349: the consumer's own lawsuit
General Business Law § 349(a) declares unfair, deceptive or abusive acts or practices in the conduct of any business in New York unlawful. The private lawsuit is in § 349(h): any person injured by a deceptive act or practice may sue to stop it, to recover actual damages or $50, whichever is greater, or both. If the court finds the violation willful or knowing, it may increase the damages to three times actual damages, up to $1,000. The court may award reasonable attorney's fees to a prevailing plaintiff.
GBL 349 matters in collection cases for two reasons. It reaches any business, so it applies to an original creditor or servicer that the FDCPA does not cover. And it runs for three years: the limit for a liability created by statute (CPLR 214(2); Gaidon v. Guardian Life Ins. Co. of America, 96 N.Y.2d 201 (2001)), longer than the FDCPA's one year. The GBL 349 fee award is discretionary: GBL 349 permits a court to award a prevailing plaintiff reasonable attorney's fees, unlike the FDCPA, which requires a company found liable to pay the consumer's reasonable attorney's fees and costs.
GBL 601 and 602: the state collection statute
GBL § 601 applies to any "principal creditor" or its agent, which includes the original lender. It forbids, among other things, simulating a law enforcement officer or government agency (601(1)); collecting charges not justly due and legally chargeable (601(2)); telling an employer about the debt before judgment, with narrow exceptions (601(4)); disclosing a debt known to be disputed without saying it is disputed (601(5)); communicating with such frequency, at such unusual hours or in such a manner as can reasonably be expected to abuse or harass (601(6)); threatening action the creditor does not usually take (601(7)); claiming a right it knows does not exist (601(8)); using papers that simulate legal process (601(9)); and using social media to collect (601(12)).
The catch is enforcement. Under GBL § 602, a violation is a misdemeanor, and the Attorney General or a district attorney may sue to stop it. The only private action in 602 concerns information subpoenas (602(3)). So consumers usually plead the same conduct under GBL 349 and, against a third-party collector, the FDCPA.
The DFS rule: 23 NYCRR 1
The Department of Financial Services regulates third-party debt collectors and debt buyers collecting from New Yorkers under 23 NYCRR Part 1. According to the Department, the rule does not cover collection by original creditors. It requires:
- Initial disclosures. Specific disclosures at the start of collection, with more for charged-off debts (§ 1.2).
- Time-barred debt disclosures. Disclosures about the statute of limitations, including that suing on an expired debt violates the FDCPA (§ 1.3).
- Substantiation. After a written dispute, the collector must provide substantiation within 60 days, and may not collect until it does (§ 1.4).
- Written confirmation of payment plans. Written confirmation of payment arrangements, and at least quarterly accounting while you pay (§ 1.5).
Source: DFS, FAQ on 23 NYCRR 1, dfs.ny.gov/faqs/industry_faqs/debt, checked September 25, 2026.
New York City: 6 RCNY 5-77
New York City's Department of Consumer and Worker Protection has its own debt collection rules at 6 RCNY 5-76 and 5-77. DCWP adopted amendments in August 2024, postponed their effective date several times, and then adopted a further set of amendments that took effect on September 1, 2026. Among other things, the amended rules require a validation notice within five days after the initial communication with a New York City consumer and, for accounts whose validation notice is due on or after September 1, 2026, a written response to the consumer's first dispute or verification request (6 RCNY 5-77(f)(1), (f)(7)). The news post on the 2026 rules has the history and the new contact limits. DCWP has stated that its definition of "debt collector" has always included creditors collecting their own debts, which the federal definition does not.
Using the rules in a lawsuit
The DFS and DCWP rules are enforced by those agencies. A consumer usually uses them as evidence of what a collector was required to do, in a claim under the FDCPA or GBL 349. Whether a rule violation also supports a private claim is a question for a lawyer.
The Consumer Credit Fairness Act
The Consumer Credit Fairness Act (L. 2021, ch. 593, S153), signed November 8, 2021, changed the rules for lawsuits against consumers on credit debts.
Three years to sue you, and no revival
An action arising out of a consumer credit transaction where the borrower is the defendant must be commenced within three years (CPLR 214-i, effective April 7, 2022). When that period expires, a later payment, a written or oral affirmation, or any other activity on the debt does not revive or extend it. A collector that sues or threatens to sue on a time-barred debt also violates Regulation F (12 C.F.R. § 1006.26(b)).
The Act also set rules for the complaint and for default judgments in cases filed on or after May 7, 2022:
- The complaint must show its work. It must attach the contract (or, for a revolving account, the charge-off statement) and state the original creditor, the last four digits of the account, the date and amount of the last payment, an itemization of the amount sought, and, if the plaintiff bought the debt, the date of sale and each prior owner (CPLR 3016(j)).
- An extra notice. The court clerk mails an additional notice, and no default judgment may be entered until 20 days after that mailing, or at all if it comes back undeliverable (CPLR 306-d).
- A sworn limitations check. A request for a clerk's default judgment must include an affidavit that, after reasonable inquiry, the plaintiff believes the statute of limitations has not expired (CPLR 3215(j)).
If you have been sued in New York, do not ignore the papers. In the Civil Court of the City of New York, a summons delivered to you personally requires an answer within 20 days; otherwise within 30 days after proof of service is filed (N.Y.C. Civ. Ct. Act § 402). The sued by a debt collector page explains the answer and the defenses.
Frozen bank accounts
After a judgment, a creditor can restrain your bank account. New York law protects a set amount and exempts certain income, but the dollar figure is indexed and published sources conflict, so it is not published here. If your account has been frozen, call a lawyer promptly.
For every clock in one place, see deadlines. For the other states we cover, see New Jersey and Florida.
Common questions
Can I sue a collector under GBL 601?
Generally not directly. GBL 602 makes a 601 violation a misdemeanor and lets the Attorney General or a district attorney sue to stop it. The only private action in 602 concerns information subpoenas. Consumers usually bring the same conduct as a deceptive practice under GBL 349, and against a third-party collector, under the FDCPA.
If I make a payment on an old debt, does the three-year clock restart?
Not in New York for a consumer credit transaction. CPLR 214-i says that once the three-year period expires, any later payment, written or oral affirmation, or other activity on the debt does not revive or extend it.
Do the New York City rules apply to the original creditor?
The City's Department of Consumer and Worker Protection has stated that its rules have always applied to collectors collecting their own debts, and in November 2024 it proposed an amendment to make that explicit. Whether a particular creditor is covered is a question for a lawyer with the facts.
How much of my bank account is protected from a judgment?
New York protects a set amount of money in a bank account from restraint, and exempts certain income such as some government benefits. The dollar figure is indexed and published sources conflict, so it is not published here. If your account has been frozen, call a lawyer promptly.
Tell us what they did.
One conversation with an attorney, in your language. We tell you which laws the collector or the credit bureau broke, which deadline runs first, and what to save this week. If it is not a case we can take, we say so and tell you where to go.
(718) 484-7510The FDCPA and the FCRA require a company found liable to pay the consumer’s reasonable attorney’s fees and costs. Our fee arrangement is confirmed in a written retainer before we begin. English, Russian and Spanish in-house; an interpreter for any other language.