Debt Collection Companies

There are two types of debt collectors:

  • firms that collect debts owed to third parties and
  • creditors (firms to whom you owe money directly).

The Federal Fair Debt Collection Practices Act (FDCPA) regulates both debt collectors who contact you on behalf of your creditor and debt collectors who contact you because they have purchased your defaulted account from the original creditor (or another debt collector) and are now trying to collect from you.  Law firms who regularly work on debt collection actions are also governed by the FDCPA.

In addition, all debt collectors operating in New York, whether acting on behalf of a third party or on behalf of themselves, are required to follow New York State law (Article 29-H of the General Business Law) governing debt collection practices.
Both federal and state laws regulate and restrict various debt collection practices.