The state’s financial regulator released a second draft of licensing requirements for debt collectors, creditors and attorneys.
11/14/2023 1:50 P.M.
2 minute read
Debt collectors required to be licensed in California under the Debt Collection Licensing Act can now comment on the Department of Financial Protection and Innovation’s (DFPI) second draft of proposed regulations.
The proposed regulations (PDF) focus on the scope of the licensing requirement for temporary debt collection employees and employees of debt collection agency subsidiaries as well as defining criteria for licensure that applies to original creditors and attorneys engaging in debt collection. They also address document retention.
This second draft reflects changes to text on those topics after the DFPI accepted comments on the proposals last summer.
Annual report requirements will be adopted through a separate rulemaking, according to the DFPI.
The DCLA took effect on Jan. 1, 2022, and requires any person engaging in the business of debt collection in California to be licensed by the DFPI, ACA International previously reported.
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, and is reviewing the current draft to provide comments.
Interested parties are invited to submit comments, including comments describing the potential financial impact of the draft regulations, by Jan. 15, 2024.
Submit comments by:
- Email to [email protected], including “PRO 05-21” in the subject line, or
- Mail addressed to Department of Financial Protection and Innovation Legal Division; Attn: DeEtte Phelps, Regulations Coordinator, 2101 Arena Blvd., Sacramento, CA 95834
Contact DFPI Senior Counsel Emily Gallagher at [email protected] with any questions on the proposed regulations.
State Licensing Underway
Meanwhile, the Conference of State Bank Supervisors (CSBS) issued a reminder to individuals and businesses that provide mortgage, money transmission, debt collection and consumer financial services to renew their annual licenses in the Nationwide Multistate Licensing System & Registry (NMLS).
Licensing renewal on NMLS is open through Dec. 31, according to a news release from the CSBS.
To locate specific guidance under the California Financing Law, begin by selecting “California” on the NMLS state licensing page and follow the links to the transition checklists for the financing law.
Information on NMLS renewal is available on the Annual Renewal page of the NMLS Resource Center.
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.