California's Debt Collection Licensing Act & New License Obligations
California is joining the ranks of states that license debt collection activities. With the passage of SB 908, the state of California has passed the Debt Collection Licensing Act, which will, beginning on January 1, 2022, provide for enacting changes for the licensure, regulation, and oversight of debt collectors by the Commissioner of Business Oversight. This law will prohibit a person from engaging in the business of debt collecting in California without a license and also require debt collectors to comply with reporting, examination, and other new legal requirements. The bill also establishes the Debt Collection Advisory Committee within the Department of Business Oversight to advise the commissioner on matters relating to debt collection.
LicenseLogix is tracking the promulgation of the California license application and will be positioned to file for these licenses on behalf of our clients once available.