California DFPI Proposes Further Modifications to Debt Collection Licensing Act

Although California’s licensing application is due by December 31, 2021, California’s Department of Financial Protection and Innovation (DFPI) continues to propose modifications to its debt collection licensing requirements. 

Modification History: 

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

New Modifications:

On November 15, 2021, the DFPI announced a second round of modifications, which affect the definitions of “Branch office” and “Debt Collector”.  Consistent with the comments submitted by the CRC in June 2021,  the definition of “Branch office” now specifies that the term only applies if, in addition to debt collection activity,  the location is held out to the public as a business location or money is received there. The definition of “Debt Collector” has been updated to match the same definition found in Section 100002 of the Financial Code. Comments to the new modifications are due by December 2, 2021. 

The notice of modifications can be found here, and the text of the proposed modifications can be found here.