A New York City law designed to prevent collection law firms from engaging in abusive practices does not infringe on the state's authority to regulate the profession, according to a ruling from the Second Circuit Court of Appeals.

Two law firms, Eric M. Berman PC and Lacy Katzen LLP, sued the city several years ago over the collection regulations, specifically arguing that Local Law 15 encroaches on the state's authority to regulate lawyers. Local Law 15, adopted in 2009, added debt buyers and collection law firms to a list of entities regulated by the city.

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