Consumer debt: charged-off debts.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Judiciary
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill restricts the sale and assignment of charged-off consumer debts to debt buyers, prohibiting them from being sold more than one year after they were initially charged off. It also requires creditors to notify consumers when their debts are sold and establishes a timeframe for when debt buyers can initiate legal action to recover these debts, limiting it to one year from the date of charge-off. The bill’s intent is to provide additional support for California’s animal health and food safety laboratory systems.
Key provisions
- Charged-off consumer debts cannot be sold or assigned more than one year after they were charged off.
- Creditors must notify consumers when their charged-off debts are sold to a debt buyer.
- Debt buyers cannot initiate legal action to recover a charged-off debt after one year from the date of charge-off.
- A debt buyer must wait at least two years from a notice of default or delinquency before initiating legal action.
- Debt buyers must wait at least 90 days from the date of charge-off before initiating legal action.
- The bill amends existing sections of the Civil Code and Code of Civil Procedure to implement these changes.
Who is affected
- Consumers with charged-off debts
- Debt buyers
- Creditors who charge off debts
- The poultry industry
- California’s agricultural economy
Notable changes
Bill text
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Sponsors
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1 on record
Primary sponsor
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