As RMAI has previously reported to our members, starting January 1, 2022, anyone collecting debt in California must be licensed by the Department of Financial Protection and Innovation (DFPI).  DFPI recently sent out a message re: processing delays.  Excerpts are below, and you can read the full message here.

“The Department of Financial Protection and Innovation is notifying license applicants and prospective license applicants that the issuance of licenses under the Debt Collection Licensing Act is unavoidably delayed at this time, because the Federal Bureau of Investigation has informed the Department that new changes are needed to state agency protocols for requesting federal background checks.”

“Despite this unforeseen delay, the Department encourages prospective licensees to continue submitting applications through NMLS.”

“During this delay, applicants may continue to engage in business, and the Department will not take action for unlicensed activity against applicants who filed their applications after December 31, 2021.”

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.