Tips for New Yorkers to Protect Themselves from Predatory Debt Collectors

New York State officials have released a guide to help New Yorkers use the state’s Exempt Income Protection Act (EIPA) to protect their money from debt collectors:

The EIPA is a state law that prevents debt collectors from draining consumers’ bank accounts, leaving them unable to cover the costs of basic needs. The law automatically protects a certain amount of money in people’s bank accounts

from being frozen or seized, and also protects vital government benefits like Social Security, disability benefits, and veteran’s benefits.

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The EIPA automatically exempts a certain amount of money in people’s bank accounts from being frozen or seized. This protected amount is based on the minimum wage and is $3,960 for those in New York City, Long Island, or Westchester, and $3,720 for those anywhere else in New York as of January 2025. The EIPA also protects 90% of wages or salary earned in the 60 days before a debt collector attempts to seize funds.

Crucially, EIPA also protects government benefits and retirement funds from being frozen or seized, ensuring New Yorkers have enough money to pay their bills. These funds include:

• Social Security;
• Supplemental security income;
• Disability benefits;
• Unemployment insurance;
• Workers compensation;
• Veterans benefits;
• Spousal support, alimony, or child support; and
• Payments from public or private pensions and retirement accounts, such as 401(k)s or individual retirement accounts (IRAs).

For a copy of the guide, click here.