On September 25, 2020, the Governor of California signed into law SB 908, the Debt Collection Licensing Act, and AB 1864, the “Mini-CFPB” and California Consumer Financial Protection Law (“CCFPL”). See our prior ALERT dated Sept. 3, 2020, for more information.
Beginning January 1, 2022, the Debt Collection Licensing Act will require any person engaged in the business of debt collection in California to obtain a license, making California the 35th state to require collectors to obtain a license. The Debt Collection Licensing Act also amends the Rosenthal Fair Debt Collection Practices Act, as detailed in our prior ALERT.
The “Mini-CFPB” bill expands the current Department of Business Oversight’s authority to regulate and enforce various provisions regarding consumer financial products and services, California consumer financial laws and, to the extent permissible, federal consumer financial laws. The “Mini-CFPB” bill also enacts the CCFPL, a law meant to strengthen consumer protections by promoting nondiscriminatory access to consumer financial products and protecting consumers from discrimination and unfair, deceptive and abusive acts and practices in connection with financial practices and services.
Please let us know if you have any questions or would like more information.