SB-908 (Wieckowski) Debt collectors: licensing and regulation: Debt Collection Licensing Act.

Would require debt collection firms to obtain a license and comply with reporting, examination, and other oversight by a state commissioner.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law, the Rosenthal Fair Debt Collection Practices Act, prohibits debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and defines “consumer debt” and “consumer credit” for purposes of that act.
This bill would include sending digital or written communications that do not clearly display the license number of the debt collector as a prohibited debt collection practice.
Existing law establishes the Department of Business Oversight as headed by the Commissioner of Business Oversight, who, among other things, generally provides for the licensure and regulation of persons who are engaged in various consumer financial businesses.
This bill would enact the Debt Collection Licensing Act which would provide for the licensure, regulation, and oversight of debt collectors by the commissioner, define terms for its purposes, and make other conforming changes. The bill would prohibit a person from engaging in the business of collecting on a consumer debt in this state without a license and comply with reporting, examination, and other oversight by the commissioner. The bill would require a person applying for a license to, among other things, pay an application fee, sign the application under penalty of perjury, and submit to a criminal background check by the Department of Justice. By expanding the scope of the crime of perjury this bill would impose a state-mandated local program.
This bill would require each licensee to, among other things, file reports with the commissioner under oath, maintain a surety bond, pay to the commissioner its pro rata share of all costs and expenses reasonably incurred in the administration of these provisions, as estimated by the commissioner. The bill would authorize the commissioner to enforce these provisions by, among other things, promulgating regulations, performing investigations, suspending a license, and enforcing the provisions, as specified. The bill would prohibit the public disclosure of specific information provided by a licensee to the commissioner.
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from the California Legislature's website

Related Topics

Related Statutes

Related Case Law

  • Mashiri v. Epsten Grinnell & Howell
    (2017) 845 F.3d 984

    [FDCPA; Collection Notice] Homeowner successfully alleged that HOA law firm violated FDCPA because pre-lien notice payment demand timeline was inconsistent with the right under the FDCPA to dispute the debt within 30 days of receipt of letter.

  • Bear Creek Master Association v. Edwards
    (2005) 31 Cal.Rptr.3d 337

    [Duty to pay; Assessment Liens] A recorded assessment lien secures the assessment debt that continues to accrue on the owner’s account; the debt is not limited solely to the amount stated in the lien at the time the lien was initially recorded.

  • Multani v. Witkin & Neal
    (2013) 215 Cal.App.4th 1428

    [Assessment Collection; Redemption Rights] A nonjudicial foreclosure sale may be set aside where a HOA fails to notify the foreclosed owner of his/her redemption rights after the foreclosure sale.

  • Diamond v. Superior Court
    (2013) 217 Cal.App.4th 1172

    [Assessment Collection; Notice Requirements] A HOA must strictly adhere to the statutory lien and foreclosure notice requirements in order to perfect an assessment lien and foreclose on a homeowner’s property.

  • Huntington Continental Townhouse Association, Inc. v. Miner
    (2014) 230 Cal.App.4th 590

    [Assessments & Collection; Partial Payments] An association is required to accept partial payments made by a delinquent homeowner and allocate them in accordance with Civil Code Section 5655, even after the association has recorded an assessment lien.

Related Links

U.S. Supreme Court Holds Debt Collection Firms that Soley Practice Non-Judicial Foreclosure Exempt from FDCPA - Published on HOA Lawyer Blog (June 2019) 'No Cost' Collections Can Prove Very Costly - Published on HOA Lawyer Blog (February 2017) Do 'No Cost' HOA Collection Companies 'Wield Unchecked Power'? - Published on HOA Lawyer Blog (March 2014) Assessment Collections Fees in "No-Cost" Collections Contracts - Published on HOA Lawyer Blog (October 2012)