Has The NYC DCA Placed Increased Burdens on Process Servers?
- September 16, 2013
- by Kimberly Faber
Editor's Note: Due to the vagueness of a previous version of this article, the following has been updated as of September 16, 2013. The original article was published on September 5th.
Over the past few years, industry sentiment has revealed that decisions by the New York City Department of Consumer Affairs (NYC DCA) regarding licensing and regulations may have created an increasingly difficult environment for process servers to work and maintain their businesses within the 5 Boroughs.
After years of battling regulation changes proposed by the New York City Department of Consumer Affairs, the New York State Process Server Association (NYSPPSA) was able to come to an agreement with the DCA on new regulations and licensing requirements for process servers in New York City. The state association was opposed to the initial changes proposed as early as 2008 as they would have made it incredibly difficult for process servers to be in business and do their jobs effectively. The opposition was so high that a lawsuit was brought against the Department of Consumer Affairs by the NYSPPSA in order to stop the regulations from going into effect. The two entities were able to then work together to put together regulations that both parties could agree upon, and in 2011, new regulations regarding the industry went into effect.
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The law changes ranged from licensing and record keeping to bonds and logging service attempts. Some of the regulations that are now required of all process servers and process serving agencies in New York City are listed below.
- Individual process servers must obtain a $10,000 surety bond in order to be licensed
- Process serving agencies must obtain a $100,000 surety bond to be licensed
- Process servers must pass a test in order to obtain a license
- GPS coordinates must be logged during all service attempts
- All attempts must be logged digitally through a 3rd party software in addition to being logged on paper
One of the pressing issues resulting from the regulations is the high fines that have been leveled against New York City process servers and other business owners regarding compliance. Instances have even been reported where process servers are being fined nearly what they make in an entire year. Additionally, recent allegations against the DCA make claims of a quota system for fining business owners in New York City, as well as pressure to impose harsher fines and guilty recommendations.
Earlier this year it was revealed that an NYC DCA judge named Michele Murro was allegedly pressured to impose maximum penalties even when she recommended a not-guilty decision or lower fine. Other rumors of a quota system geared toward generating funding for the Consumer Affairs were revealed by separate news sources. Mirro is the longest-tenured judge within the industry and claims she was punished for resisting pressure from superiors. She is facing disciplinary charges. More on that here.
These allegations paired with statistics regarding the number of process servers in New York City raises the question of whether the NYC DCA is placing increased burdens on process servers. Recent statistics have revealed that the landscape of process serving in New York City has certainly changed, the question of how much of this is directly related to changes imparted by the NYC DCA remains.
The below statistics illustrate just how much the industry has changed.
- 60% of New York City process servers have left the profession since 2011
- There's been a 45% decrease in the number of New York City process servers overall
- 1,062 process servers have given up their licenses
Both licensed businesses and licensed individuals have declined significantly in New York City since September 2011. In 2011, there were 144 licensed agencies. In 2013, there are 121 licensed businesses. The decline in licensed individuals has been even steeper. There were 1760 licensed individuals in 2011. In 2013, there are 967 licensed individuals serving process in New York City, which is a 45% decrease in just two years.
The regulation changes were initially intended to eliminate sewer service and boost the industry.
Special thanks to DGR Legal for highlighting this information and turnover of the industry in New York City. To help contribute and spur change in New York City, contact NYSPPSA.
- Rules of Civil Procedure in New York and the 5 Boroughs
- Numerous Process Serving Jobs Lost Thanks to the New York DCA
- NYSPPSA President Larry Yellon on New York Process Server Laws
- New York City Process Servers Reach Agreement Over Record-Keeping Rules
- New York Process Servers Still Working Toward Fair Laws