Just before midnight last night, the California legislature passed SB 908, Debt Collection Licensing Act, which would license debt collectors in the State of California. This bill would require debt collectors (collection agencies, debt buyers, and collection law firms) to be licensed by the Department of Business Oversight (DBO) in California no later than January 1, 2022.
RMAI and the California Association of Collectors were heavily involved in negotiations on this bill and were able to achieve significant amendments prior to passage, including:
- Eliminating consumer access to bonds
- Ensuring minor FDCPA violations would not result in the loss of a license
- Allowing a family of companies to share a license and examination
- Preempting local governments from licensing
- Ensuring no requirements for branch licenses
- Eliminating a mandated state audit every two years
- Creating an advisory committee for rules and fees prior to publishing them for comment
- Delaying the licensing date by one year.
The Governor has until September 30, 2020, to sign or veto this bill. RMAI will monitor and advise members of the Governor’s action regarding this bill.
Support the RMAI Legislative Fund with Your Contribution
The reach of RMAI’s advocacy efforts extends to state and federal regulatory and legislative activity, like this effort in California. You can get information about the Legislative Fund and make your contribution at https://rmaintl.org/advocacy/contribute-now/.
This alert is intended for members of the Receivables Management Association International and 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.