Writer: Lucy Lazarony
Editor: Lillian Guevara-Castro
Reviewer: Adam West
Key Takeaways
- New York City has issued a new rule that offers strong consumer protections against debt collectors.
- Under the rule, debt collectors may only contact consumers in three attempts within seven days.
- If a New Yorker disputes a debt or asks for verifications, debt collectors have to provide documentation within 60 days.
New York City is cracking down on debt collectors. New York City’s Department of Consumer and Worker Protection (DCWP) has issued a new rule that gives New Yorkers strong consumer protections against predatory debt collectors.
The Stopping Harassment and Intimidation and Ensuring Lawful Debt (SHIELD) collection rule goes beyond the protections provided by the federal Fair Debt Collection Practices Act and Regulation F in protecting consumers against predatory debt collectors.
This New York City rule includes allowing New Yorkers to dispute their debt at any time, further limiting the number of times debt collectors can contact New Yorkers, plus protections related to medical debts.
“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,” said DCWP Commissioner Sam Levine.
How SHIELD Protects New Yorkers
The SHIELD rule takes effect Sept. 1, 2026. The rule protects New Yorkers against constant calls and texts from debt collectors by limiting debt collectors to just three attempts within seven days.
According to the rule, New Yorkers will be able to dispute a debt at any point of the collection process, and they can dispute the debt in any mode of communication they have been using to communicate with the debt collector.
The rule also addresses medical debt. Debt collectors acting on debt belonging to a hospital must inform New Yorkers about the medical facility’s financial assistance policy in all phases of the collection process.
In addition to debt collectors, the SHIELD rule covers the original creditors such as financial institutions and hospitals when they collect on their own debt.
The rule does not regulate those institutions’ ongoing day-to-day business interactions, and certain Fair Credit Billing Act-covered financial institutions are exempt from validation and verification requirements
Verifying Debt Under SHIELD
Debt collectors must verify a debt and offer documentation showing the validity of the debt after a New Yorker disputes a debt or asks for verification. Debt collectors have to provide documentation within 60 days of a New Yorker’s request.
If the debt collector does not provide this documentation, the debt collector must send a New Yorker a Notice of Unverified Debt. After those 60 days, third-party debt collectors and debt buyers lose their ability to collect on a debt.
“New York City’s new debt collection rule goes above and beyond federal law to protect consumers from aggressive debt collection tactics,” said Adam Rust, director of financial services for the Consumer Federation of America.
“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.”
One Missed Paycheck Away From Collections
Research from the Community Service Society of New York reveals that a growing number of New Yorkers rely on credit cards to pay for essential expenses such as groceries, rent, and utilities.
“When everyday necessities are financed with high-interest debt, families are only one missed paycheck or medical bill away from collections,” said David R. Jones, President and Chief Executive Officer of Community Service Society of New York.
“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,” — Sam Levine, DCWP Commissioner
“The SHIELD Rule recognizes this reality. By limiting harassment, strengthening dispute rights, and creating new protections around medical debt, New York City is stepping in to protect households who are already financially stretched thin.”
States With Tough Debt Collection Laws
In addition to the SHIELD rule in New York City, a handful of states have established stringent debt collection laws for the consumers in their states. These states include California, New York, Massachusetts, Illinois, and Texas.
For example, California imposes strict regulations on debt collectors including how they may handle consumer data.
New York’s state law has rigorous disclosure requirements and limitations on how a debt collector may contact consumers. Massachusetts law provides consumers with strong dispute rights and transparency in the debt collection process.
Illinois law provides clear consumer guidelines for disputing debts and safeguarding collection practices. In Texas, debt collectors are limited on the tactics they can use when collecting a debt and consumers have straightforward dispute rights.
The Bottom Line
A new rule in New York City gives New Yorkers strong consumer protections when it comes to dealing with debt collectors. This rule, which takes effect Sept. 1, will allow New Yorkers to dispute a debt at any time during the collection process.
The rule also limits the number of contacts a debt collector may have with a New Yorker. Phone calls and texts from debt collectors are limited to only three attempts within seven days. Debt collectors acting on behalf of a hospital must inform New Yorkers about the medical facility’s financial assistance policy.
