Debt Collection NYC | Cedar Financial

Expert Recovery of Your Funds in NYC

New York City debt collection that gets results, fast.

New York City’s debt collection laws and regulations are among the strongest in the U.S. That’s why it’s essential to have a licensed, accredited agency on your side.

Cedar Financial offers:

  • Over 30 years’ experience in local NYC debt recovery
  • Custom campaigns and dispute resolution for your industry
  • Experienced creditor’s rights attorneys in New York

With coverage in Brooklyn, Queens, Manhattan, the Bronx and Staten Island, our “People-First” approach can help you recover more funds, in less time. Whether your claim is large or small, consumer or commercial, new or old, we can help.

See why Fortune 50 companies trust Cedar Financial to recover debt in New York City.

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Top Challenges in NYC Debt Collection

Compliance to Strict New York Fair Debt Collection Laws

New York is known for its extensive consumer protection laws – and debt collection is no different. In addition to the federal Fair Debt Collection Practices Act (FDCPA), third-party agencies collecting debt in New York City must adhere to supplemental regulations enacted in 2015 by Governor Andrew M. Cuomo and the New York State Department of Financial Services.

These regulations cover:

  • Substantiation of the debt owed;
  • Written confirmation of debt settlement agreements and pay-offs;
  • Protections against the collection of “zombie debts”;
  • And use of email to communicate about debts.

They also require New York debt collection agencies to provide additional initial disclosures about consumer rights, including:

  • Prohibited practices under the FDCPA;
  • A list of funds exempt from judgment;
  • And specific information about charged-off debts.

To avoid marring your good reputation, it is important to work only with trusted New York collections experts trained in local, state and federal laws.

At Cedar Financial international debt collection agency, we protect the integrity of our clients by upholding the highest ethical, professional and customer service standards. As a certified member of ACA International, International Association of Commercial Collectors (IACC), Commercial Law League of America (CLLA), TCM Group and the Better Business Bureau (BBB), we’ve forged a strong reputation as leader in New York debt collection.

Difficulty Recovering Out of Statute Debts

Trying to collect on an older debt? If it has been over six years, it may be more difficult to get paid, since New York City also requires collectors to disclose when they think a debt is past the New York statute of limitations.

The disclosure must inform consumers that the legal time limit for legal action may have expired, and let them know that, if they choose to make a payment on the debt, admit to owing the debt, promise to pay the debt or waive the statute of limitations on the debt, the time period in which the debt is enforceable in court may start again.

When others fail, Cedar Financial can help you collect on old or out of statute New York City debts. Like New York lawmakers, we believe that a transparent, consumer-centered approach is the key to success and will never use deceptive practices in the recovery of your funds. Instead, we focus on communication and dispute resolution, building positive relationships with your customers for a more positive payment experience.

NYC Licensing Requirements

While licensing is not needed at the state level, New York City requires all entities engaged in the business of collecting personal or household debts from NYC residents to obtain a Debt Collection Agency License from the NYC Department of Consumer Affairs.

This requirement applies to all collection agencies, debt buyers, law firms and attorneys engaged in collection activities, regardless of their location.

Cedar Financial is bonded, insured and nationally licensed to collect debts across the U.S., including in New York City. Should your debtor still refuse to pay, we offer low-cost legal collection options through our network of carefully vetted, licensed NYC lawyers and attorneys.

Submitting claims is fast and easy.

Litigation in New York City

While every effort is made to resolve accounts amicably, sometimes a firmer approach is needed. Here’s what you need to know about the legal process in New York City.

Filing Suit in NYC

The debt collection litigation process in New York City is straightforward. It begins with the plaintiff – the creditor or debt collector – filing a suit with the New York Court and serving a summons to the debtor. The debtor, known as the defendant, then has 20-30 days to submit an answer to the complaint to the court, depending on whether the summons was served in person.

Once suit is filed, there are three possible outcomes:

1. The debtor settles the case after the summons has been served;

2. The debtor files an answer or moves to dismiss, advancing the case;

3. The debtor fails to respond and a default judgment is obtained.

Cedar Financial’s in-house legal team partners with experienced creditor’s rights attorneys in NYC to advance your New York City debt collection litigation case at every step so you can focus on your business. Learn more here.

Settling the Debt

Often, the act of filing suit is enough to encourage the debtor to settle their debt. Under New York’s extended debt collection regulations, consumers have added protections when settling their accounts.

For any settlements or payment arrangements made, debt collectors must provide written confirmation of the agreement within five days. With payment plans, debtors are also entitled to quarterly accounting of payments made. Once the debt is paid off, the debt collector must provide a written confirmation within 20 days.

Cedar Financial, as a collection agency NYC, is experienced at negotiating settlements that work for both parties. We focus on amicable, People-First solutions to get you paid fast while promoting a positive payment experience that preserves your customer relationships.

Enforcing a Judgment

Obtaining a judgment in court does not automatically mean you will be paid for the debt. In New York City, judgments are valid for 20 years. If your debtor fails to pay, it is important to follow through on the judgment with enforcement measures before the judgment expires.

The most common methods of enforcement are:

  • Levies
  • Garnishment
  • Liens


A levy is a legal order requiring the debtor’s bank to remove money from their account and turn it over to the judgment creditor or collection agency that has the judgment.  New York protects consumer bank accounts by requiring the judgment creditor and the bank to take certain steps before the account can be levied or restrained.

The Exempt Income Protection Act (EIPA) sets a minimum balance not subject to a freeze or levy by the judgment creditor. It also requires the bank to ensure the account does not contain exempt funds. Judgment creditors must issue exemption forms to the bank and appropriately address any claimed exemptions.


The court may order the debtor’s employer to withhold a portion of their earnings to pay the debt. In New York State, a creditor can garnish up to 10% of the debtor’s gross wages or 25% of their disposable income (to the extent that this amount exceeds 30% of minimum wage), whichever is lesser.

For some types of debt, such as child support, unpaid taxes and defaulted student loans, a court order may not be required to garnish wages, and the maximum limit may be higher.


A lien is a security interest given to the judgment creditor over property, such as a house or a car. The creditor or debt collector can place a lien on the debtor’s property as soon as it becomes the judgment creditor in order to secure repayment of a debt.

Liens give the judgment creditor the right to receive a portion of any money received if the property is sold or refinanced. Judgment liens are valid for 10 years and can be renewed another 10 years.

Post-Judgment Legal Collections

At Cedar Financial, our post-judgment legal collections team will continuously pursue payment of your New York City judgment.

While there may be a waiting period to collect, we as a debt collection agency NYC, improve your chances of recovery by keeping tabs on your debtor, recording an Abstract of Judgment in the county where your debtor resides and periodically reviewing their assets, credit and overall ability to pay. When new assets are identified, we re-engage judgment enforcement proceedings to collect your funds.

Recover more with top debt collection attorneys in NYC.

Quick Facts About Debt Collection in New York

Open Invoices

Unpaid Invoice Interest Rate Up to 16%
Can Collection Fees be added? Only if expressly authorized by agreement or permitted by law
Statute of Limitations/Prescription 6 years


Post Judgment Interest Rate Up to 9%
Judgment Expiration 20 years; 10 years for judgment liens on real property
Can judgment be renewed? Judgment liens can be renewed another 10 years

Local Experts in Collections

We offer on-the-ground representatives in NYC who understand the debt collection practices that work to support full recovery of your funds.


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Licensed to collect in all 50 U.S. states and over 150 countries, with local offices in:

FAQs About Debt Collection in New York City

Why should we ask you to collect our debts in NYC?

We are licensed and accredited to collect your debts in New York City. With over 30 years of debt collection experience, we adhere to all local, state and federal laws, including the Fair Debt Collection Practices Act (FDPCA) and New York City debt collection regulations, using a fair, but firm approach for faster recovery of your funds

What does it cost to hire you to recover the amount due to us?

For pre-legal services, we work on a “no collection – no fee” basis, so you will only pay when your funds are recovered. For legal services, we offer low-cost options.

What is the minimum amount or number of accounts you will accept?

We have no minimum value or volume that is required to place accounts.

What type of debt do you service?

We service consumer and commercial debts, large or small, across many industries, including Healthcare, Education, Government and Retail.

How long will your amicable (non-legal) debt collection process take?

It varies. Factors such as the age of the account and the type of debt being collected must be taken into account, along with the specific circumstances of the claim. Because we know timely results are important to you, we guarantee an update on your claim within 30 days

What is the typical debt collection process?

Once we receive your accounts and the proper documents to validate the claim, our representatives will begin by skip tracing the accounts to locate the debtor. We will then immediately start working the account via phone and mail and issue a written demand notice allowing 30 days for debt validation as required by the FDCPA.

What is the statute of limitations in New York City, for older debts?

The statute of limitations in New York is six years

Do you provide field services?

If your debtor is unresponsive to communication attempts, we provide on-the-ground field services for investigation, skip tracing, in-person visits at your debtor’s residence, asset searches and more.

Do I need to provide documentation?

Yes, we must be able to validate the debt before we can begin the collection process. Validation documents include, but are not limited to, contractual agreements between you and the consumer, a bill or invoices for exchanged goods or services, as well as, legal court judgment documents.

Do you offer litigation services if you exhaust all amicable collection efforts without recovery?

Yes. In the event all amicable efforts are exhausted, our in-house legal team will conduct a thorough review of the file to determine collectability in litigation. If the file qualifies and you approve, we will work with a top local attorney in New York City to file suit and pursue the claim, including asset location, arbitration, trial representation, obtainment of a judgment and post-judgment enforcement.

Are collection fees legal to be added to the balance owed?

Yes, but they must be included in the contract.

* The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.

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