November 30, 2021

Volume XI, Number 334

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November 29, 2021

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Some Lawyers Must Soon Be Licensed By The DFPI

California had been one of 16 states that did not require licensing of debt collectors.  That changed last year with the enactment of the Debt Collection Licensing Act.  2020 Cal. Stats. ch. 163 (SB 908).  The DCLA will effect at the beginning of next year and provides for the licensing and regulation of debt collectors. 

As defined by the DCLA, a debt collector is "“any person who, in the ordinary course of business, regularly, on behalf of that person or others, engages in debt collection.”  Fin. Code § 100002(j).  "Debt collection" is defined as "any act or practice in connection with the collection of consumer debt".   The term "debt collector" includes any person who composes and sells, or offers to compose and sell, forms, letters and other collection media used or intended to be used for debt collection. The term “debt collector” includes “debt buyer” as defined in Section 1788.50 of the Civil Code.

The DCLA  exempts a several classes of persons, including  depository institutions (e.g., FDIC-insured banks, credit unions, DFPI-licensed finance lenders and brokers, DFPI-licensed mortgage lenders and servicers, Department of Real Estate licensed agents, persons subject to the Karnette Rental-Purchase Act, a trustee for a nonjudicial foreclosure, and debt collections regulated under the Student Loan Servicing Act).  Fin. Code § 100001(b)(1), (2).  The DCLA, however, does not expressly exempt licensed attorneys.  

In August, the DFPI issued an invitation for comments regarding possible additional rulemaking, including the scope of the DCLA.  Today is the deadline for responding to the invitation.  

© 2010-2021 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XI, Number 278
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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

949-851-5428
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