NY S04271

Creates a new licensing requirement through the Department of Financial Services for consumer debt collectors operating in New York or collecting from New York residents, with two-year license terms and mandatory surety bonds ranging from $10,000 to $100,000 based on gross profit

Prohibits debt collectors from calling consumers more than twice per week, leaving voicemails that could be heard by others, contacting consumers at work, or using caller ID spoofing technology

Exempts banks, credit unions, attorneys, public officers, nonprofit credit counseling organizations, and creditors collecting their own debts from licensing requirements

Establishes civil penalties of up to $500 per collection attempt or $100,000 total for unlicensed debt collection, and renders any judgments obtained by unlicensed collectors null and void

Restricts confessions of judgment (pre-authorized court judgments) by prohibiting their use for consumer debts, amounts under $250,000, and non-New York residents, effective 180 days after enactment with licensing provisions taking effect January 1, 2028