In late February the New York City Department of Consumer and Worker Protection announced the Stopping Harassment and Intimidation and Ensuring Lawful Debt (SHIELD) Collection Rule that will go into effect on September 1, 2026. The SHIELD Rule goes beyond the requirements of the Fair Debt Collection Practices Act and Regulation F, limiting communication with consumers, broadening dispute and verification rights, and establishing new protections governing the collection of medical debt.
There are several changes that the SHIELD Rule introduces to New York City’s debt collection framework, including:
- Collector Communication Caps – Debt collectors are not allowed to make more than three communications or attempted communications to a consumer regarding a debt within a seven-day period. Collectors may also not contact the consumer again during that period once the consumer has responded.
- Consumer Debt Disputes – Consumers may dispute a debt or request verification of a debt at any point during the collection process and through any communication medium used by the collector.
- Verification Window – When a consumer disputes a debt or requests verification, a collector must provide documentation substantiating the debt within 60 days. If verification is not provided within 60 days, third-party collectors lose the ability to collect the debt and must issue a Notice of Unverified Debt.
- Enhanced Medical Debt Protections – Debt collectors are prohibited from furnishing information about medical debt to consumer reporting agencies and must treat certain consumer statements regarding insurance coverage, financial assistance eligibility, or billing errors as disputes requiring investigation and verification.
- Expanded Record Keeping/Operational Requirements – The SHIELD Rule requires collectors to maintain detailed records regarding communications, disputes, complaints, and litigation activity, as well as recordings of certain consumer communications and policies related to time-barred debt and verification practices.
Now is the time for anyone collecting from New York City consumers to review their communication policies, dispute intake procedures, verification workflows and credit reporting practices before the SHIELD Rule takes effect on September 1, 2026.
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