In New York, stop collecting debt from non-native speakers of English
'06.03.2020'
Source: www1.nyc.gov
In New York, there are about two million people with limited English proficiency. Debt collection agencies take advantage of this and recover debts from them using deceptive methods. Now this practice will stop. This is stated in a press release from the Department of Protection of the Rights of Consumers and Employees (DCWP).
About the new rules
The rules proposed by the department prohibit debt collection agencies from engaging in fraud aimed at consumers with limited English proficiency (Limited English proficiency, LEP - the term refers to a person who does not speak English perfectly, often because this language is not his native language) .
On March 5, DCWP Commissioner Lorelei Salas announced the innovation.
The proposed rules will require debt collection agencies to inform consumers about the available linguistic services, prohibit fake, inaccurate or partial translation of any debt collection messages, and keep records related to the language preferences of consumers.
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She added that the department, as a consumer protection agency, is committed to doing everything possible to narrow the language gap. “And that’s exactly what the rules we are proposing do,” she said.
In New York, where every fourth resident, which is almost two million people, cannot perfectly read, speak, write English or understand it, the lack of language services is of particular concern. Without these services, such people may not be aware of their rights and be more vulnerable to the unfair practices of some collectors.
US Consumer Debt
Today, consumer debt is at the highest level in history: Americans owe $ 4,1 trillion in unpaid consumer debt unrelated to a mortgage. As a result, the debt collection industry is booming; collectors communicate with consumers more than a billion times a year.
What will change with the new rules
New rules will require debt collectors:
- inform consumers about the available linguistic services;
- Notify consumers of a glossary of commonly used debt collection terms (available in multiple languages on the DCWP website)
- request, register, and save records of each consumer’s preferences for language;
- communicate consumer preferences for language if they send the debt back to the creditor, sell the debt, or take it to court;
- keep a record of the number of accounts in which they tried to collect debts in a language other than English.
The DCWP will hold a public hearing on the proposed rules on April 10, 2020 at 10 a.m. at 42 Broadway, 5th floor. Comments on the proposed rules can be submitted in person at the hearing or online, by email [email protected], by fax 646-500-5962 or by letter to the address indicated in the proposed rules. The deadline for submitting comments is April 10 to 17:00.
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In addition, anyone who wishes to collect debts from New Yorkers must be licensed by DCWP. The Department is currently licensing more than 1400 collection agencies in 45 states and 14 countries.
Last year, DCWP received more than 370 complaints about collectors, often about debts that consumers disagree with. DCWP encourages everyone with a debt collector to contact “Debt Collection Guide». This will allow you to understand what the rights of collectors are, what they can and cannot do to collect debts.
DCWP also encourages those who are struggling with debt to visit the New York Center for Financial Empowerment to receive free one-on-one financial advice. Since 2009, the centers have served more than 57 customers, and since the first opening in 000, more than 2008 consultations have been held. Clients reduced their debt by more than $ 114 million and increased their savings by almost $ 000 million. New Yorkers can make an appointment for a free and confidential meeting with a professional financial advisor in nyc.gov/TalkMoney or call 311.
More on DCWP
The Department of Consumer and Employee Protection protects New Yorkers by improving their daily economic lives with the goal of creating a prosperous community.
In particular, DCWP grants licenses to more than 75 enterprises in more than 000 industries. The department also ensures compliance with key laws on consumer protection, licensing and workplaces. By supporting businesses through fair enforcement and access to resources, and helping resolve complaints, DCWP protects the market from predatory practices and seeks to create a culture of law enforcement.
Through its work with the public and financial empowerment and labor policy departments, DCWP is empowering consumers. In particular, it provides them with tools and resources to achieve financial well-being, as well as a balance between work and personal life.
You can learn more about DCWP by calling 311, visiting the site nyc.gov/dcwp or department pages on social networks: Twitter, Facebook, Instagram and YouTube.
