Advocacy by California Association of Collectors ensures bill includes workable solutions for the accounts receivable management industry and consumers.
8/18/2020 12:30
Legislation from California State Sen. Bob Wieckowski, D-Fremont, requiring a license for debt collectors and debt buyers was approved by the Assembly Banking and Finance Committee 9-3 this month.
The Debt Collection Licensing Act (SB 908) would require a license from the California Department of Business Oversight (DBO) for debt collectors and debt buyers to collect on debts in the state, ACA International previously reported.
The California Association of Collectors (CAC) and Receivables Management Association International supported the bill before the vote by the Assembly Banking and Finance Committee.
Advocates with the CAC worked with the bill’s authors to ensure the licensing system protects consumers and is workable for the accounts receivable management (ARM) industry.
If enacted, Wieckowski’s bill would subject debt collection agencies and buyers in the state to licensing requirements for the first time since 1992. It would also require the DBO to respond to consumer complaints and enforce violations.
According to an article from the California Globe, the Assembly Appropriations Committee and full Assembly will review the bill next. California Gov. Gavin Newsom has indicated that he would sign the bill. It passed in the California Senate 29-4.
The bill was slated for discussion by the Assembly Appropriations Committee Tuesday, Aug. 18, with possible continuation of the discussion on Thursday, Aug. 20.
ACA is following this legislation and will provide an update on the CAC’s advocacy efforts and amendments to the bill.
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.