Debt collection.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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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, SB 1131, proposes significant changes to California’s Debt Collection Licensing Act. It aims to simplify the licensing process by requiring a single license for debt collection businesses instead of individual licenses for each branch office. The bill also proposes increased licensing fees, exemptions for certain entities and activities, and limitations on the Commissioner’s ability to suspend licenses for Fair Debt Collection Practices Act violations. Furthermore, it establishes a Debt Collection Advisory Board to advise the Commissioner and removes the requirement to report account information.
Key provisions
- Renames the Debt Collection Licensing Act to the Debt Collector Licensing Act.
- Requires a single license for a debt collection business, eliminating the need for individual licenses for branches.
- Expands the list of entities and activities exempt from the licensing requirements.
- Increases the application fee to $1,000 and annual fees to $1,000, $4,000, or $7,000 based on the number of California debtor accounts.
- Removes the requirement to report total or face dollar amounts of accounts.
- Limits the Commissioner’s power to suspend licenses for Fair Debt Collection Practices Act violations unless adjudicated in court.
- Establishes a Debt Collection Advisory Board to advise the Commissioner.
- Requires remote examinations for licensees, unless an onsite examination is deemed necessary.
Who is affected
Bill text
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Sponsors
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1 on record
Primary sponsor
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