CA-DFPI UPDATES COLLECTION LICENSING STATUS

CA-DFPI UPDATES COLLECTION LICENSING STATUS

The California Department of Financial Protection and Innovation (“DFPI”) recently released a statement to those applying for a debt collection license under the Debt Collection Licensing Act that application approvals will be delayed. The delay is due at least in part to the Federal Bureau of Investigation informing the DFPI that certain protocols need to be changed with respect to requesting federal background checks.

The DFPI encourages those needing a debt collection license to apply through the Nationwide Multistate Licensing System. In a change to its enforcement policy, the DFPI indicated that it will not take action for unlicensed activity against those who apply after December 31, 2021. The DFPI urged applicants to check the DFPI website for updates regarding DFPI’s approval timeline. The DFPI earlier noted that some applications submitted before the end of 2021 would not be fully processed until 2023. Read More