California DFPI Proposes New Changes to Debt Collection Licensing Act


Although the California license application is due no later than December 31, 2021, the California Department of Financial Protection and Innovation (DFPI) continues to propose changes to its debt collection authorization requirements.

Change history :

On April 23, 2021, the California Department of Financial Protection and Innovation (DFPI) issued a notice of proposed regulations respecting the license application and procedures for applying for a debt collection license under the Debt Collection License Act. Many entities, including the Consumer Relations Consortium (CRC), submitted comments. On June 23, 2021, the Commissioner issued the first notice of changes to the proposed rule and invited interested parties to comment.

New changes:

On November 15, 2021, the DFPI announced a second set of changes, which affect the definitions of “branch” and “debt collector”. In line with the comments filed by the CRC in June 2021, the definition of “Branch” now specifies that the term only applies if, in addition to the debt collection activity, the place is made public as a place of business or if money is received there. The definition of “debt collector” has been updated to correspond to the same definition as that appearing in article 100002 of the Financial Code. Comments on the new changes are expected by December 2, 2021.

Notice of changes can be found here, and the text of the proposed changes can be found here.


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