California DFPI Announces Inaugural Debt Collection Advisory Committee Meeting insidearm.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from insidearm.com Daily Mail and Mail on Sunday newspapers.
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Beginning on January 1, 2022, any person engaged in the business of debt collection in California must be licensed under the Debt Collection Licensing Act. Licensed entities also are subject to additional requirements under the Act, such as developing compliance-focused policies and procedures, maintaining surety bonds, filing annual reports, and undergoing periodic examinations. The Act made related changes to existing debt collection laws in the state as well.
For purposes of the Debt Collection Licensing Act, debt collection is “any act or practice in connection with the collection of consumer debt.” A debt collector is “any person who, in the ordinary course of business, regularly, on the person’s own behalf or on behalf of others, engages in debt collection,” and this includes any person who composes and sells, or offers to do the same, forms, letters, and other collection media used or intended to be
Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter - July 2021 #3 | Troutman Pepper jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
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Last month, the Department of Financial Protection and Innovation (DFPI) published proposed regulations under the Debt Collection Licensing Act (DCLA). The regulations largely address procedural matters related to obtaining a license. However, the DFPI’s proposed regulations also appear to implicitly address the scope of the license requirement, potentially expanding the category of licensees beyond what the statutory text contemplates.
The DCLA requires all persons who
engage in the business of debt collection in California to be licensed. Cal. Fin. Code § 100001(a) (emphasis added). The proposed regulations, however, appear to contemplate that any debt collector must be licensed.