New York debt collection laws
By Kai Greenspan, Founding Editor · Last updated: August 3, 2026
How long can someone sue you over a debt in New York?
Three years. New York Civil Practice Law and Rules Section 214-i states that“an action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant must be commenced within three years”, with exceptions the section names for certain other provisions.
This is shorter than many people expect, and shorter than it used to be: the period was reduced from six years to three by the Consumer Credit Fairness Act. When the clock starts, and whether anything paused it, depends on the facts of a particular account, which is a question for a lawyer.
Source: CPLR Section 214-i · quoted 3 August 2026
Does paying something restart the clock?
No, and the statute says so in terms. Section 214-i continues:“Notwithstanding any other provision of law, when the applicable limitations period expires, any subsequent payment toward, written or oral affirmation of or other activity on the debt does not revive or extend the limitations period.”
That sentence exists because the older rule worked the other way: a small payment on a very old debt could restart the whole period. Under the current law it cannot.
Source: CPLR Section 214-i · quoted 3 August 2026
Do debt collectors need a license in New York?
There is no statewide license. New York City has its own: the Debt Collection Agency License, issued by the Department of Consumer and Worker Protection. The city’s own guidance states that “you must have a Debt Collection Agency License to collect personal or household debts from New York City residents”.
Note what that attaches to: the consumer, not the collector. An agency in another state still needs the city license to collect from a New York City resident, which is why the city’s public register lists agencies from across the country. The city also names“a debt buyer business that buys old debt and then tries to collect money directly or through a third party” and “an attorney or law firm who regularly engages in activities that are usually performed by debt collectors”among those who must hold it.
Some other localities license collectors separately, including Buffalo and Yonkers. The license roll for New York City is public: you can search it yourself in the city’s Issued Licenses dataset on NYC Open Data, filtering the business category to Debt Collection Agency.
Sources: NYC Debt Collection Agency License ·NYC Open Data license register · checked 3 August 2026
What are collectors not allowed to do?
New York General Business Law Article 29-H governs conduct. Section 601 opens:“No principal creditor, as defined by this article, or his agent shall”, and then lists prohibited acts, among them:
“1. Simulate in any manner a law enforcement officer, or a representative of any governmental agency of the state of New York or any of its political subdivisions”, and “2. Knowingly collect, attempt to collect, or assert a right to any collection fee, attorney’s fee, court cost or expense unless such changes are justly due and legally chargeable against the debtor”.
Federal law applies on top of this everywhere in the United States: the Fair Debt Collection Practices Act and the CFPB’s Regulation F, which includes limits on how often a collector may call about a debt.
Source: NY General Business Law Section 601 · quoted 3 August 2026
Common questions about New York debt collection law
What is the statute of limitations on debt in New York?
Three years. New York Civil Practice Law and Rules Section 214-i requires that "an action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant must be commenced within three years." The same section adds that once the period expires, "any subsequent payment toward, written or oral affirmation of or other activity on the debt does not revive or extend the limitations period." The period was shortened from six years to three by the Consumer Credit Fairness Act. Exactly when a limitations period starts or pauses depends on the facts of the account, which is a question for a lawyer, not this page.
Does making a payment restart the clock on an old debt in New York?
No. CPLR Section 214-i says expressly that after the limitations period expires, "any subsequent payment toward, written or oral affirmation of or other activity on the debt does not revive or extend the limitations period." This is a deliberate change in New York law: under the older rule, a payment could restart the clock.
Do debt collectors need a license in New York?
There is no statewide debt collector license in New York. New York City requires one: a Debt Collection Agency License issued by the Department of Consumer and Worker Protection, which the city says you must have "to collect personal or household debts from New York City residents." Because the requirement follows the consumer rather than the collector, agencies based anywhere in the country need the city license to collect from New York City residents. Some other localities, including Buffalo and Yonkers, have their own licensing rules.
Are debt buyers and law firms covered by the New York City license?
Yes, both. New York City lists among those required to hold the license "a debt buyer business that buys old debt and then tries to collect money directly or through a third party" and "an attorney or law firm who regularly engages in activities that are usually performed by debt collectors."
How do I check whether a collector is licensed in New York City?
The city publishes its license roll as public open data. Search the city’s Issued Licenses dataset, published by the Department of Consumer and Worker Protection, for the business name, filter the business category to Debt Collection Agency, and check the license status and dates. Debt Collection Index verifies New York agencies against that same public record.
What debt collection practices are illegal in New York?
New York General Business Law Article 29-H sets out prohibited conduct by creditors and their agents. Section 601 states that "no principal creditor, as defined by this article, or his agent shall" among other things "simulate in any manner a law enforcement officer, or a representative of any governmental agency of the state of New York or any of its political subdivisions" or "knowingly collect, attempt to collect, or assert a right to any collection fee, attorney’s fee, court cost or expense unless such changes are justly due and legally chargeable against the debtor." The federal Fair Debt Collection Practices Act and the CFPB’s Regulation F apply nationwide in addition, including limits on how often a collector may call.
This page is information about published law, not legal advice, and it does not create a lawyer-client relationship. Whether any rule applies to a particular debt depends on facts this page cannot know. Every quotation above was taken from the linked source on the date shown; if you find an error, our corrections policyexplains how to tell us.