2023 New York Laws › GBS - General Business › Article 29-HH - Debt Collection Procedures Related to Identity Theft › 604-A - Prohibited Practices.

§  604-a.  Prohibited practices.  1. Upon receipt from a debtor of the
following, a principal creditor shall cease collection activities  until
completion of the review provided in subdivision five of this section:
(a)  a copy of a valid police report filed by the debtor alleging that
the debtor is the victim of an identity theft crime, including, but  not
limited  to,  a  violation  of  section  190.78, 190.79, 190.80, 190.81,
190.82 or 190.83 of the penal law, for the specific debt being collected
by the principal creditor; or
(b) a copy of a completed and signed federal trade commission identity
theft victim's report filed by the debtor alleging that  the  debtor  is
the victim of identity theft; and
(c)  the  debtor's  written statement that the debtor claims to be the
victim of identity  theft  with  respect  to  the  specific  debt  being
collected by the principal creditor.
2. The written statement described in paragraph (c) of subdivision one
of this section shall consist of either of the following:
(a) a signed federal trade commission ID theft victim's affidavit; or
(b)  a  written  statement that certifies that the representations are
true, correct, and contain no material omissions of  fact  to  the  best
knowledge  and  belief  of  the  person  submitting the certification. A
person submitting such certification who declares as true  any  material
matter  pursuant to this subdivision that he or she knows to be false is
guilty of a misdemeanor. Such statement shall contain or be  accompanied
by,  the  following,  to  the extent that such items are relevant to the
debtor's allegation of identity  theft  with  respect  to  the  debt  in
question:
(i) a statement that the debtor is a victim of identity theft;
(ii)  a  copy of the debtor's driver's license or identification card,
as issued by the state;
(iii) any other identification document that supports the statement of
identity theft;
(iv) specific  facts  supporting  the  claim  of  identity  theft,  if
available;
(v) any explanation showing that the debtor did not incur the debt;
(vi) any available correspondence disputing the debt after transaction
information has been provided to the debtor;
(vii)  documentation of the residence of the debtor at the time of the
alleged debt. This may include copies of bills and statements,  such  as
utility  bills, tax statements, or other statements from businesses sent
to the debtor, showing that the debtor lived at another residence at the
time the debt was incurred;
(viii) a telephone number for contacting  the  debtor  concerning  any
additional   information   or   questions,  or  direction  that  further
communications to the debtor  be  in  writing  only,  with  the  mailing
address specified in the statement;
(ix)  to the extent the debtor has information concerning who may have
incurred the debt, the identification of  any  person  whom  the  debtor
believes is responsible;
(x)  an express statement that the debtor did not authorize the use of
the debtor's name or personal information for incurring the debt;
(xi) an express statement that the debtor was coerced to authorize the
use of the debtor's name or personal information for incurring the debt;
or
(xii) criminal or family court documents that support the statement of
identity theft.
3. The certification required pursuant  to  subdivision  two  of  this
section  shall  be  sufficient  if  it is in substantially the following
form:
"I certify the representations made are true, correct, and contain  no
material omissions of fact.
_______________________  ________________________"
Date and Place)
(Signature)
4.  If a debtor notifies a principal creditor orally that he or she is
a victim of identity theft, the  principal  creditor  shall  notify  the
debtor,  orally  or  in  writing,  that  the  debtor's  claim must be in
writing. If a debtor notifies a principal creditor in writing that he or
she is a victim  of  identity  theft,  but  omits  information  required
pursuant  to  subdivision one of this section and the principal creditor
does not cease  collection  activities,  the  principal  creditor  shall
provide  written notice to the debtor of the additional information that
is required.
5. Upon receipt of the complete statement and information described in
subdivision one of this section, the principal creditor shall review and
consider all of  the  information  provided  by  the  debtor  and  other
information   relevant   to  the  review.  The  principal  creditor  may
recommence debt collection activities only  upon  making  a  good  faith
determination based on all of the information provided by the debtor and
other  information  available  to  the principal creditor in its file or
from the creditor that the  information  does  not  establish  that  the
debtor  is  not  responsible  for  the  specific  debt  in question. The
principal creditor's determination shall be made in a manner  consistent
with  the  provisions  of  15  U.S.C.1692f(1).  The debt collector shall
notify the debtor in writing of that determination  and  the  basis  for
that   determination  before  proceeding  with  any  further  collection
activities.
6. No inference or presumption that the debt is valid or  invalid,  or
that the debtor is liable or not liable for the debt, shall arise if the
principal  creditor  decides  after  the review described in subdivision
five of  this  section  to  cease  or  recommence  the  debt  collection
activities. The exercise or non-exercise of rights under this section is
not  a  waiver  of  any  other  right  or  defense of the debtor or debt
collector.
7. A principal creditor who ceases collection  activities  under  this
section  and  does  not  recommence  those  collection activities, shall
within five business days of the cessation of collection activities,  do
the following:
(a)  if  the principal creditor has furnished adverse information to a
consumer credit reporting agency,  notify  the  agency  to  delete  that
information; and
(b)  notify  the  creditor  that  debt collection activities have been
terminated based upon the debtor's claim of identity theft.