NY A05537

Creates a new licensing requirement for consumer debt collectors operating in New York State, administered by the Department of Financial Services, with licenses valid for two years and requiring a surety bond ranging from $10,000 to $100,000 based on gross profit

Prohibits debt collectors from contacting consumers more than twice by phone in a seven-day period, calling outside 8 AM to 9 PM local time, leaving voicemails that could be heard by others, or communicating via text/social media without authorization

Exempts banks, credit unions, attorneys, public officers, nonprofit credit counseling organizations, and creditors collecting their own debts under their own name from the licensing requirement

Establishes civil penalties of up to $500 per collection attempt or $100,000 total for unlicensed debt collection, and declares any judgment obtained by an unlicensed collector null and void

Prohibits confession of judgment on consumer debts, amounts under $250,000, and debts from non-New York residents, effective 180 days after enactment with licensing provisions taking effect January 1, 2028