Collection agency new york
Here's an overview of collection agencies in New York:
What is a collection agency?
A collection agency is a company that specializes in collecting debts on behalf of creditors. They work with individuals and businesses to recover outstanding debts, such as overdue bills, loans, and credit card balances.
Types of collection agencies in New York:
- Third-party collection agencies: These agencies are hired by creditors to collect debts. They are regulated by the Federal Trade Commission (FTC) and the New York State Department of Financial Services (DFS).
- In-house collection agencies: These agencies are owned and operated by the creditor themselves, rather than being hired by a third party.
- Debt buyer agencies: These agencies purchase outstanding debts from creditors and then attempt to collect on those debts.
Licensing and regulation:
In New York, collection agencies must be licensed by the DFS. To become licensed, agencies must meet certain requirements, such as:
- Registering with the DFS
- Paying a licensing fee
- Providing proof of insurance
- Complying with state and federal laws, such as the Fair Debt Collection Practices Act (FDCPA)
How to find a collection agency in New York:
- DFS website: The DFS website provides a list of licensed collection agencies in New York.
- Better Business Bureau (BBB): The BBB website allows you to search for accredited collection agencies in your area.
- Online directories: Websites like Collection Agency Directory and Collection Agency List provide a list of collection agencies in New York.
Tips for dealing with collection agencies in New York:
- Verify the agency's license: Make sure the agency is licensed by the DFS.
- Know your rights: Understand your rights under the FDCPA and the New York State Debt Collection Act.
- Communicate with the agency: Respond to the agency's attempts to contact you and try to resolve the debt.
- Don't ignore the debt: Ignoring the debt won't make it go away. Addressing the debt can help you avoid further legal action.
Some popular collection agencies in New York:
- Transworld Systems
- PRA Group
- Cavalry Portfolio Services
- Encore Capital Group
- Midland Credit Management
Remember to always research and verify the legitimacy of any collection agency before dealing with them.