QUESTION
Why has there been a significant decline in consumer complaints against debt collection and debt settlement companies in NYC?
0:38:37
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131 sec
The number of consumer complaints against debt collection and debt settlement companies in NYC has significantly declined over a decade, raising concerns from Council Member Julie Menin.
- In 2014, 382 complaints were mediated by the Department of Consumer and Worker Protection (DCWP), but by 2023, this number drops to 41.
- Despite being the top complaint category, Carlos Ortiz, Commissioner of External Affairs at DCWP, lacks specific data to fully explain the decline.
- Ortiz acknowledges the importance of mediating complaints and the complexity of communication with consumers.
- Menin highlights the issue's urgency, given the context of a hearing specifically addressing this matter.
Julie Menin
0:38:37
So in 2014, when I served as commissioner of DCWP, the agency mediated 300 and 82 consumer complaints against debt collection and debt settlement companies.
0:38:49
Over the last 10 years, that steadily declined.
0:38:52
The agency mediated just 41 consumer complaints against debt collection and debt settlement companies in 20 3, so I'm incredibly concerned about that.
0:39:02
If that's the agency's number 1 category of complaint, why are the numbers so low?
Carlos Ortiz
0:39:09
I'm not so I I I think I would love to get perhaps a a a range of which our our priority complaint categories are.
0:39:17
I think for us mediating lanes is is a is a part of the part and parcel of the essential work we have to do.
0:39:23
I know that that process itself is is very It involves many communication with the consumers.
0:39:29
We we definitely wanna make sure that they're being helped throughout these processes.
0:39:32
So I think I would love to get the the specific data for you, and we could talk through more of of the complaints.
Julie Menin
0:39:38
My concern is you have in your debt collection guide that it is the number one complaint category.
0:39:43
So that's out there That's the number one complaint category.
0:39:45
So why would the number be dropping from where it was a decade ago to where it is today?
Carlos Ortiz
0:39:52
Alright.
0:39:53
I am I totally hear your concern on chairmaning on this issue, and I I think I just wanna be able to pull the information for you on on this.
0:40:00
I'm not aware of be dropping in recent years, perhaps compare it to 2014, but I haven't seen those numbers either.
0:40:07
So I'm happy to when I have the information in front of me, I can bring
Julie Menin
0:40:10
it to you.
0:40:10
I do just wanna say this is very a point.
0:40:11
I mean, this is a hearing on this topic.
0:40:13
You know, if it's a number one complaint of the agency, you should have that information available.
0:40:18
And I'm not pulling out information from a hat.
0:40:20
Literally, we have the information that the agency mediated just 41 consumer complaints against debt collection and debt settlement companies in 2023.
0:40:29
That number has gone down precipitously.
Carlos Ortiz
0:40:31
I'm sorry, counsel.
0:40:32
We don't have the debt collector information for you.
0:40:34
My understanding is that We've the request was for us to talk about our secondhand dealer work.
0:40:40
So I have some of that information.
0:40:42
But, again, I'm sorry.
0:40:43
I don't have the debt collector information.
0:40:45
I I will get that
Julie Menin
0:40:45
from you.
0:40:46
If you can get that to our committees.