Nexa Collections

Collection Agency in New York | Compliant & Effective


Navigating the 3-Year “Drop-Off”

In New York—from the global financial hubs of Manhattan and the industrial centers of Buffalo and Rochester to the tech corridors of Albany—doing business requires a level of compliance that most national agencies simply cannot reach. In 2026, the stakes are higher than ever. With the Consumer Credit Fairness Act slashing the window to sue for consumer debt to just 3 years and the total ban on medical debt credit reporting, the old “wait and see” approach is a recipe for total loss. You don’t just need a collector; you need a New York-licensed strategist who can secure your revenue before it becomes legally uncollectible “zombie debt.”

Nexa provides 100% reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation/bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant.

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The New York Legal Landscape (2026 Summary)

New York laws are designed to protect the debtor. If your agency doesn’t hit the 3-year deadline or fails to provide the mandatory Notice of Lawsuit, your claim is dead on arrival.

Debt Category Statute of Limitations New York Statute (CPLR)
Consumer/Credit Card 3 Years CPLR § 214-i
Medical Debt 3 Years CPLR § 213-d
B2B / Commercial 6 Years CPLR § 213(2)
Wage Garnishment 10% Cap (Strict) CPLR § 5231
Judgments 20 Years CPLR § 211(b)

Critical New York Rules for 2026:

  • The 3-Year Consumer Trap: Under the CCFA, consumer debt (including medical) expires in just 3 years. Making a partial payment no longer “restarts” the clock. Nexa’s high-speed “Step 1” demand service is essential to identify solvent debtors before the 36-month cliff.

  • Fair Medical Debt Reporting Act: New York hospitals and providers are prohibited from reporting medical debt to credit agencies. Nexa utilizes judicial judgments and bank levies to maintain “teeth” where credit threats no longer exist.

  • The $17.00 Wage Shield: As of Jan 1, 2026, the NYC/Long Island/Westchester minimum wage is $17.00/hr. Under New York law, you cannot garnish a debtor’s wages unless they earn more than 30x the minimum wage ($510/week). Nexa scrubs your accounts to ensure you aren’t suing “judgment-proof” individuals.

  • NYC-Specific Restrictions: New York City has its own set of restrictive laws that complicate collections. With the new 2026 mayor-elect signaling even tougher enforcement through the DCWP, NYC clients should avoid collecting money themselves. The regulatory climate is so pro-debtor that professional mediation is the only safe path. Note: NYC pressure is limited by law; therefore, our Step 2 Fixed-Fee service is the most strategic entry point to trigger payment without the risk of high-commission litigation.

Cost-Effectiveness: The Nexa Advantage

  • Fixed-Fee Recovery ($15/account): Ideal for early-stage and high-volume accounts. Debtors pay 100% directly to you. No commissions.

  • Contingency Service (20%–40%): Performance-based recovery. No Recovery, No Fee.

Industries We Serve in New York

  • Manufacturing & Logistics: B2B recovery for the automotive and industrial sectors in Upstate New York. We handle high-value freight brokerage and warehousing disputes, utilizing the 6-year commercial statute to your advantage.

  • Healthcare & Medical: 100% HIPAA-compliant. We specialize in navigating the 3-year medical statute and the total reporting ban, using mediation to preserve patient trust across the Mount Sinai, NYU Langone, and Northwell regional footprints.

  • Colleges & Universities: From the SUNY system to private Ivy League institutions, we manage tuition and bursar recovery with a focus on student-first mediation and institutional reputation.

  • K-12 Private & Charter Schools: Managing unpaid enrollment fees with a sensitive, diplomatic approach tailored for New York’s competitive educational landscape.

  • Accountants & CPA Firms: Recovery of professional service fees. We understand the “net-30” billing cycle and use professional mediation to ensure you get paid without damaging client rapport.

  • Banks & Credit Unions: Expert handling of delinquent consumer loans and deficiency balances using New York’s strict CCFA compliance frameworks.

  • Construction & Trades: Revenue recovery for HVAC, electrical, and general contractors. We are experts in New York Lien Law Article 2 and the strict 8-month filing window for private projects.

  • B2B Commercial, Restoration & Waste Management: High-speed recovery for service providers in the Tri-State area who need immediate cash flow to manage high operational and labor costs.

Recent New York Recovery Results

Case 1: Manhattan-Area Specialty Surgical Center (Medical)

  • The Problem: $165,000 in aging patient debt approaching the 3-year statute. The clinic could no longer report to credit bureaus due to the new NY ban.

  • The Result: Nexa implemented a legal-forward mediation strategy, recovering $112,000 in 70 days via bank levies and professional settlements.

Case 2: Buffalo-Based Industrial Supplier (B2B)

  • The Problem: A $58,000 unpaid invoice from a vendor who claimed “supply chain insolvency.”

  • The Result: Utilizing New York’s 6-year contract statute and a formal pre-legal demand, Nexa secured a full $58,000 recovery plus interest in just 32 days.

Frequently Asked Questions (FAQ)

1. Is it true I only have 3 years to sue in New York?

For consumer and medical debt, yes. The Consumer Credit Fairness Act reduced the window from 6 years to 3 years. For commercial (B2B) debt, you generally still have 6 years.

2. Can you still garnish wages in NYC in 2026?

Yes, but only 10% of gross wages, and only if the debtor earns more than $510/week (30x the NYC minimum wage). Nexa performs “Garnishment Math” to ensure your legal spend is profitable.

3. Why is “Step 2” Fixed-Fee recommended for NYC?

Because of NYC’s aggressive DCWP enforcement and the pro-debtor climate under the new mayor-elect, direct pressure is legally capped. Our Step 2 service professionally initiates the recovery process at a low cost, which is safer and more effective than going straight to high-stakes contingency.

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