The California Department of Financial Protection and Innovation (DFPI) recently issued an Invitation for Comments on the Proposed Second Rulemaking under the Debt Collection Licensing Act. The Invitation for Comments seeks further information on topics relating to the scope of certain definitional terms, the types of information required on annual reports, and surety bond amounts.
In key part, the DFPI seeks comments on whether clarification is needed for certain terms, such as, “engage in the business of debt collection,” “in the ordinary course of business” and “regularly” [engage in debt collection], and whether clarity is needed regarding exempt entities or transactions from the Act. The DFPI also requests comments on whether additional information should be required in annual reports to be submitted by licensees and whether higher surety bond amounts should be required, among other points.
Note that in the initial Notice of Rulemaking, the DFPI expressed that it anticipates that the final rules, if adopted, will become effective on or around November 19, 2021, which is intended to allow applicants to apply for a license before January 1, 2022.
Comments should be submitted to the DFPI by October 5, 2021.