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Every year, state courts process millions of low-dollar but highly consequential cases that shape the lives of Americans. Debt collection, eviction, foreclosure, and child support actions have long dominated civil court dockets and case volume is on the rise. Debt collection claims have more than doubled over the past twenty years as unsecured consumer credit became more widely available.… Continue Reading

On August 31, 2022, the California Senate voted to approve House Assembly Bill 156, and sent the bill to Governor Newsom for consideration and potential signature.  If it becomes law, the bill would amend the existing California Debt Collection Act (the “DCLA”) in three ways.

First, the bill would amend provisions of Cal.… Continue Reading

Last week, the CFPB published additional frequently asked questions on Regulation F, its debt collection rule.   The new FAQs address third-party communications, electronic communications, and unusual or inconvenient time and place provisions.

Prohibitions on Third-Party Communications.  The FAQs address the following questions:

  • What is the Debt Collection Rule’s general prohibition on third-party communications?
… Continue Reading

As discussed in an earlier blog post, the California Department of Financial Protection and Innovation (“DFPI”) issued an Invitation for Comments on the Proposed Second Rulemaking under the Debt Collection Licensing Act (“DCLA”) on August 19, 2021.  The Commissioner is now considering draft regulations related to the DCLA’s scope, annual report, and document retention requirements, and has issued an “Invitation for Comments on Draft Text for Proposed Second Rulemaking Under the Debt Collection Licensing Act.”… Continue Reading

In an announcement to its subscribers sent electronically on May 23, 2022, the California Department of Financial Protection and Innovation (“DFPI”) notified applicants – and prospective applicants – for a license under California’s Debt Collection Licensing Act (the “Act”) that changes mandated by the Federal Bureau of Investigation (“FBI’) to state agency protocols for requesting federal background checks have caused “unforeseen” and unavoidable processing delays.… Continue Reading

The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s debt collection activities in 2021.  The report incorporates information from the FTC’s most recent annual letter to the CFPB describing its 2021 activities in the debt collection market, including information about the FTC’s enforcement actions involving collection practices directed at small businesses.… Continue Reading

The California Department of Financial Protection and Innovation (DFPI) has published a notice on its website concerning delays that debt collectors and buyers seeking to comply with the new licensing requirement in the state’s Debt Collection Licensing Act are currently experiencing.

The new law, passed in September 2020, requires debt collectors and buyers to apply for a DFPI license by December 31, 2021. … Continue Reading