The California state regulator is seeking input on electronic licensing and grounds for denying a license, among other changes, by June 8, 2021.
The California Department of Financial Protection and Innovation (DFPI) has filed a Notice of Proposed Rulemaking to add to the agency’s licenses application process.
The Debt Collection Licensing Act was signed into law in September 2020, as was legislation to create the DFPI—essentially a state version of the Consumer Financial Protection Bureau. The DFPI will include oversight of debt collectors and emerging financial technology products, ACA International previously reported.
California is now one of 35 states to require a license for debt collection. Agencies have until Jan. 1, 2022, to apply.
The DFPI commissioner is proposing adding the following sections to subchapter 11.3 of title 10 of the California Code of Regulations to adopt the license application and requirements to obtain a debt collection license under the Debt Collection Licensing Act:
- Section 1850 – Defines terms used in the regulations.
- Section 1850.6 – Requires electronic filing of license application and related information through the Nationwide Multistate Licensing System (NMLS).
- Section 1850.7 – Sets forth the license application and information requirements.
- Section 1850.8 – Requires appointment of the commissioner as agent for service of process.
- Section 1850.9 – Requires fingerprinting through the California Department of Justice.
- Section 1850.10 – Requires investigative background report for non-residents of the U.S.
- Section 1850.11 – Provides notices concerning information practices and privacy.
- Section 1850.12 – Sets forth the process to challenge information in NMLS.
- Section 1850.13 – Provides for sharing information with other government agencies.
- Section 1850.14 – Clarifies “financial responsibility” for purposes of denying a license.
- Section 1850.15 – Sets forth grounds for denying a license.
- Section 1850.16 – Requires designated email address to receive communications from the department.
- Section 1850.30 – Provides process for reporting changes to information in the license application.
- Section 1850.31 – Provides process for reporting new officers, directors and other key personnel.
- Section 1850.32 – Provides process to register new branch office or change of existing branch office.
- Section 1850.50 – Requires surety bond of at least $25,000 and sets forth the bond form.
- Section 1850.60 – Provides license is effective until revoked, suspended or surrendered.
- Section 1850.61 – Provides process to surrender license.
A copy of the NPRM and proposed text is available on the DFPI’s website.
The 45-day public comment period ends on June 8, 2021.
Comments may be emailed to: [email protected] or mailed to:
Department of Financial Protection and Innovation
Attn: Sandra Sandoval
300 S. Spring Street, Suite 15513
Los Angeles, California 90013
For more information on how the ACA licensing staff can assist with your licensing application completion needs, please contact us at [email protected] or call (952) 926-6547.