New NYC Process Server Regulations and Rules Cut Down Industry

By August 28, 2013 July 14th, 2014 8 Comments

An article in the most recent edition of the New York Professional Process Servers Association (NYSPPSA) by Director Joey Knight highlights the impact of the recent rulings and DCA involvement has had on process servers there. The article title “Decimation of an Industry” accurately sums up the staggering number of process servers who have been put out of business by the new requirements.

The following quote shows just how much the server landscape has changed for NYC process servers in the past two years:

“As of September 2011 there were 144 licensed agencies in NYC. There are currently 121 licensed agencies; of those, 56 are newly licensed agencies (within the past year or two). That means 79 agencies are no longer in business.

As of September 2011 there were 1,760 licensed individual process servers in NYC. There are currently 967; of those, 269 are newly licensed (within the past year or two). That means 1,062 process servers gave up their licenses”.  That’s a little more than 60%!

NYSPPSA’s president Larry Yellon talks about the issues process servers have faced in the wake of  DCA involvement in a latter with Counsel at the Office of New York City Council.  Among them involve:

  • Agencies with bad credit being able to get the $100,000 bond required and not having the option to get a bond to quality with the city with a “Trust Fund” as individual servers can.
  • An extreme increase in fines from the past, with some servers being fined closed to what they make in an entire year.
  • The fines faced by servers as a result of inaccurate GPS locations or the inability to even record a GPS location when there is no signal.
  • Repetitious recordkeeping caused by the need to have written log books in addition to the logs kept by the newly required third party providers.

In this blog we constantly talk about the need for active state associations, with members who participate and are aware of pending legislation. What has happened in New York should be an indicator of just how important that is. Even though the final outcome has had a serious effect on the industry and servers, it would have been even worse if there hadn’t been considerable financial backing and action on the part of NYSPPSA.


New York process server

Join the discussion 8 Comments

  • Chris Rossi says:

    The NYC Dept. of Consumer Affairs has destroyed our industry for the small companies and now only the firms with the most money can survive. But even so, there are just not enough process servers for the large companies to utilize, so in my opinion – everybody loses in this battle against the bureaucracy. See my ServeNow article I wrote almost a year ago:

    • Janice Quadara says:

      make complaints to DOI for improper Tribunal practices, extortion and being deprived of your rights by issuing illegal Subpoenas without a complaint made against an individual or business for the hopes of meeting a DCA internal Quota system. The more people complain – possibly they all may end up in hand cuffs.

  • This just doesn’t seem right and fair. I had a process serving company that I did a lot of work for tell me I had to have GPS Tags she was in Los Vegas and told me her client required it. I had done quite a bit of work in the past for her. I told her I would not account for my time. I had sat for hours on some of the people that no one else probably would have been able to serve for her and managed to get them. I do not just walk to the door I will watch and do what I can to serve them. she knows I made some hard serves for her. I told her to get another server!

  • I am really thinking of not serving any more documents from New York.

  • Amanda Sexton says:

    Chris: A very well written article. I’ve heard of a few others personally who have left New York after all this occurred and it’s truly a shame to see what’s happened.

    Denise: You’re right – it’s not fair! The actions of a few bad apples have inspired a wave of new regulations in New York that are very difficult for many to afford and put into effect. Do you serve a lot in New York?

  • Amanda Sexton says:

    I checked with Larry Yellon and it seems like unless the service is from a New York case and is being served in the 5 boroughs is the only time you would be required to follow those new GPS requirements. I’m going to do a post in the next day or so with a little more detail – hopefully next time you can pass the information on to your client and it may change their mind!

  • Denise Miller says:

    Thank you! Its the principal of whole thing. If New York wants to play by these rules I do not want their business.

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