[Adopted 10-26-2004 by G.O. No. 8-2004; amended in its entirety 12-9-2014 by G.O. No. 16-2014]
As used in this article, the following terms shall have the
meanings indicated:
Any natural person obligated or allegedly obligated to pay
any debt.
Any obligation or alleged obligation of a consumer to pay
money arising out of a transaction in which the money, property, insurance,
or services which are the subject of the transaction are primarily
for personal, family, or household purposes, whether or not such obligation
has been reduced to judgment, or any obligation or alleged obligation
arising out of a judgment.
A person engaged in business, the principal purpose of which
is to regularly collect or attempt to collect debts owed or due or
asserted to be owed or due to another and shall also include a buyer
of delinquent debt who seeks to collect such debt, either directly
or through the services of another, by, including but not limited
to initiating or using legal processes or other means to collect or
attempt to collect such debt. The term does not include:
Any person while serving or attempting to serve legal process
on any other person in connection with the judicial enforcement of
any debt.
Any attorney at law or law firm collecting a debt in such capacity
on behalf of and in the name of a client solely through activities
that may only be performed by a licensed attorney, but not any attorney
at law or law firm or part thereof who regularly engages in activities
traditionally performed by debt collectors, including, but not limited
to, contacting a debtor through the mail or via telephone with the
purpose of collecting a debt or other activities as determined by
rule of the Commissioner.
Any person employed by a utility regulated under the provisions
of the Public Service Law, acting for such utility;
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.
Is incidental to a bona fide fiduciary obligation or a bona
fide escrow agreement;
Concerns a debt which was originated by such person;
Concerns a debt which was not in default at the time it was
obtained by such person as a secured party in a commercial credit
transaction involving the creditor.
Any officer or employee of the United States, any state thereof
or any political subdivision of any state, to the extent that collecting
or attempting to collect any debt owed is in the performance of his
or her official duties.
Any nonprofit organization which, at the request of consumers,
performs bona fide consumer credit counseling and assists customers
in the liquidation of their debts by receiving payments from such
customers and distributing such amounts to creditors.
The Director of the Office of Licensing, who is also referred
to as the "Consumer Protection Officer" in Article VIA of the Charter,
and the Director of Weights and Measures, shall include the designee
of the Director, unless otherwise provided.
The Office of Licensing of the City of Yonkers, also known
as the "Consumer Protection Bureau."
Includes one or more persons of either sex, natural persons,
corporations, partnerships, associations, joint-stock companies, societies
and all other entities of any kind capable of being sued.
It shall be unlawful for any person to act as a debt collection
agency without first having obtained a license in accordance with
the provisions of this article, and without first being in compliance
with all other applicable laws, rules and regulations.
[Amended 6-1-2017 by
G.O. No. 8-2017; 9-26-2017 by G.O.
No. 15-2017]
All licenses issued pursuant to this article shall be valid
for one year unless sooner suspended or revoked. The annual fee for
a license or renewal thereof shall be $300.
A.
Each person applying for a debt collection agency license or renewal
thereof shall file an application in such form and detail as the Director
may prescribe and shall pay the fee required by this article.
B.
In addition to any other information required, the Director shall
require the following information:
In addition to any practices required under any federal, state
or local law, a debt collection agency shall:
In addition to any practices prohibited under any federal, state
or local law, a debt collection agency shall not:
A.
Attempt to collect or contact a consumer regarding a debt after such
consumer requests verification for such debt until such agency furnishes
such consumer written documentation identifying the creditor who originated
the debt and itemizing the principal balance of the debt that remains
or is alleged to remain due and all other charges that are due or
alleged to be due;
B.
Contact a consumer about or seek to collect a debt on which the statute
of limitations for initiating legal action has expired unless such
agency first provides the consumer such information about the consumer's
legal rights as the Commissioner prescribes by rule.
The Director may at any time revoke or suspend any license issued
pursuant to this article for violation of any of the terms or conditions
of such license as herein set forth, but such license shall not be
revoked without notice, and the licensee shall be entitled to a hearing.
A violation of this article shall constitute a Class II offense.
