Legal Seminar

NYC DCA’s New LEP Rules • Effective June 27, 2020 but enforcement delayed until August 26 • Imposes requirements on creditors, first-party servicers, and third-party agencies • Applicable to all (6 RCNY 5-77): – Must request and record the consumer’s language preference after starting “debt collection procedures” – Prohibits false/inaccurate/partial translations – Prohibits false representation/omissions of a consumer’s language preference when returning, selling, or placing an account for litigation – Must disclose on public websites: (i) the extent of any language services that are provided; and (ii) translations of debt terms available on DCA’s website • Applicable only to third-party agencies/debt buyers: – 6 RCNY 2-193: must provide annual report on the number of accounts serviced in a language other than English and the number of employees who did so – 6 RCNY 5-77(f)(2): must disclose in validation letters: (i) the extent of any language services that are provided; and (ii) translations of debt terms available on DCA’s website

Looking Forward • Continuing efforts to protect consumers, without careful thought, may end up hurting those same consumers due to job losses – Companies are looking out for customers, but business prohibitions have consequences for everyone • Continuing legislative efforts to ease collection activities during and after the pandemic • Anticipated uptick in FCRA, TCPA, and collection-related claims under state law in the coming months • Predictions for the impact of the 2020 election consumer protection regulation