Comments on the modifications, including definitions for a licensee’s branch office, are due Nov. 30.
11/16/2021 08:00 AM
The commissioner of the California Department of Financial Protection and Innovation (DFPI) has issued modifications to the license application and procedures for applying for a debt collection license under the Debt Collection Licensing Act and is seeking comment on the proposed changes until Nov. 30, 2021.
The Debt Collection Licensing Act, which takes effect Jan. 1, 2022, requires any person engaging in the business of debt collection in California to be licensed by the DFPI, ACA International previously reported.
On April 23, 2021, the commissioner issued a notice of rulemaking to adopt the license application and procedures for applying for a debt collection license under the Debt Collection Licensing Act. On June 23, 2021, the commissioner issued a notice of modifications to this rulemaking action.
The proposed further modifications to the regulations available for comment now were introduced Nov. 15.
Changes proposed for this second 15-day notice are shown in bold underline for additions and bold strikeout for deletions.
Of note, the DFPI proposes these changes to add clarity to the definition of a debt collector’s branch office:
“Branch office” means a location other than the applicant’s or licensee’s principal place of business identified in a license application or an amended application if activity related to debt collection occurs at the location and the location is held out to the public as a business location or money is received at the location or held at the location. For purposes of filing a Form MU3, holding a location out to the public includes receiving postal correspondence from the public at the location, meeting with the public at the location, including the location on business cards, letterhead, or any other correspondence, including signage at the location, or any other representation to the public that the location is a business location of the applicant or licensee.
It also simplifies language for the definition of a debt collector by stating that the definition follows what is listed in California’s Financial Code, subdivision (j) of Section 100002.
The California Association of Collectors Inc. (CAC) has submitted comments on the licensing law since it was introduced, including a response to the DFPI’s proposals on the definition and registration of a branch office, working with vendors and surety bonds, among others, in comments filed with the agency earlier this year, ACA previously reported.
The complete proposed modifications open for comment are available through the DFPI’s website here.
Submit comments by:
- Email to [email protected], or
- Mail addressed to Department of Financial Protection and Innovation; Attn: Sandra Sandoval; 300 S. Spring Street, Suite 15513, Los Angeles, California 90013.
Meanwhile, the DFPI has launched a new Consumer Financial Protection Division webpage with information on student loans, debt collection, the California Consumer Financial Protection Law and new covered persons as well as key links for consumers.
Licensing renewals are due in most states Dec. 31 and state regulators are encouraging individuals and businesses to start the process early.
The Nationwide Multistate Licensing System offers free online courses and state-specific checklists to guide licensees through the process, available on the Annual Renewal page of the NMLS Resource Center. The renewal period in most states runs Nov. 1 to Dec. 31.
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.
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