Legal Question in Credit and Debt Law in New York

Judgment & Collector's License in NYC

A debt collector (based in San Diego) obtained a default judgment against my fiance in 12/2002. From what I understand and have been able to find out, the NYC Dept of Cons. Affairs says under 5-77: Any agency that attempts to collect consumer debts in NYC must be licensed by the Department of Consumer Affairs.

I'm interpreting this rule in 2 ways:

1. Any agency in NYC that attempts to collect debts must be licensed by the DCA.

2. Any agency [without regard to that agency's location] that attempts to collect debts in NYC must be licensed by the DCA.

Under (2), I'm assuming it would mean that the debt collector should not have been allowed to sue because they were unlicensed in NYC to begin with.

Is this correct?


Asked on 10/30/03, 11:53 am

2 Answers from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Judgment & Collector's License in NYC

Not enough information to render an opinion. Collection agencies do not sue people...they hire attorneys for that purpose... you need to find out more information and provide it so that we can determine the status of your matter. COllection agencies do need to be licensed to collect consumer based debts in NYC.

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Answered on 10/30/03, 1:41 pm
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: Judgment & Collector's License in NYC

How did the "default" come about? Was your fiance served with notice PRIOR to the default and didn't respond or appear in court? If so, he may still be able to open the default and negotiate a settlement. If not, you may be able to vacate the judgment and if the underlying (NY)debt is more than 6 yrs old, it is beyond NY SOL. If he made /makes any payment the 6yr SOL starts to run again from then.

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Answered on 11/01/03, 6:46 am


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