RMAI is encouraging its members who are licensed under the California Debt Collection Licensing Act (CA Fin Code § 100000 et seq.) to pay their annual licensing assessment to the California Department of Financial Protection and Innovation (DFPI) under protest. RMAI, in consultation with outside legal counsel, believes that it is important for its members to file a letter of protest in order to preserve their rights in case of future legal action taken by any licensee and/or trade association on behalf of their membership.

The boards of directors of both RMAI and ACA International have agreed to work together to analyze and pursue various pathways (including legal and legislative) for relief from the unprecedented annual fee assessments that were levied by DFPI on September 30, 2025 and are due by January 1, 2026 [See related 10/3/25 Member Alert].

Below is a sample protest letter you may use. Since correspondence cannot be submitted with your payment through NMLS, it is suggested that you mail the letter directly to the DFPI and/or email it:

Department of Financial Protection and Innovation
Attn: Debt Collection Licensing Program
651 Bannon Street, Suite 300
Sacramento, CA 95811

Email: [email protected]

If you have already paid your fee, you may still send the protest letter to DFPI.  RMAI encourages you to maintain copies of the protest letter you sent to DFPI.

Please note that this is not legal advice and RMAI encourages its members to consult with legal counsel prior to the submission of the letter.

SAMPLE PROTEST LETTER

[Insert Date]

Department of Financial Protection and Innovation
Attn: Debt Collection Licensing Program
651 Bannon Street, Suite 300
Sacramento, CA 95811

Re: Payment of License Assessment Under Protest – [Insert Licensee Name / License Number]

Dear Commissioner:

Pursuant to applicable law, including Article XIII, Section 32 of the California Constitution, this letter constitutes formal notice that [Insert Licensee Name] hereby tendered payment of its 2025 license assessment through the Nationwide Multistate Licensing System on [insert date] under protest.

This protest is made on the following grounds:

  • Failure to consult with Advisory Committee (Fin. Code § 100021). The Department has not properly consulted with or obtained advice from the Debt Collection Advisory Committee as contemplated by the Debt Collection Licensing Act (Fin. Code § 100000 et seq.), including with respect to determining and advising on the method and amount of annual assessments. The absence of consultation renders the assessment process procedurally defective and inconsistent with the statutory framework.
  • Failure to comply with Proposition 26 (Cal. Const., art. XIII C, § 1 et seq. & art. XIII A). The Department’s assessment constitutes a “tax” within the meaning of Proposition 26 because it was imposed to raise general revenue or to fund regulatory activities not reasonably related to the payor’s burden or benefit from the licensing program. The assessment violates Proposition 26’s procedural and substantive mandates.

Licensee hereby advises DFPI that its payment of the 2025 California Debt Collection Licensing annual license assessment through the NMLS payment system was made under protest and with a full reservation of rights. Payment of the assessment was made solely to avoid penalties, suspension, or revocation of licensure. This protest preserves all rights to challenge the legality or amount of the assessment, including through judicial action seeking refund or declaratory relief.

Accordingly, [Licensee Name] respectfully requests that DFPI record this payment as “paid under protest” and maintain this letter in its official files for the 2025 license assessment.

Thank you for your attention to this matter.

Very truly yours,

[Insert Licensee Name / License Number]

This Member Alert is intended for members of the Receivables Management Association International, is for informational purposes only, and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.