What You Need To Know About Debt Collectors

By: Undisputed Legal/Court Service Department

All debt collection agencies that seek to collect personal or household debts from New York City residents must have a DCA license no matter where the agency is located. Creditors often use debt collection agencies to help them collect overdue debts. A “creditor” is the individual or business that provided the original service or credit for which you owe money. For example, credit card companies and cellular phone companies are creditors. Sometimes, creditors sell your debt to a third party called a debt buyer. No matter if the debt collection agency is working for a creditor or for itself as the debt buyer, it must have a DCA license and follow all laws or risk fines, penalties, or the suspension or loss of its license. 

NOTE: Debt collectors that collect child support payments must be licensed and comply with special requirements. To learn requirements for a Debt Collection Agency license, visit DCA online at nyc.gov/dca. 

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