California DFPI Issues Proposed Rulemaking On The Debt Collection Licensing Act

The California Department of Financial Protection and Innovation (DFPI) recently issued an invitation for comments on a proposed second rulemaking to implement aspects of California's Debt Collection Licensing Act (DCLA) along with a draft text of the proposed rule. The DFPI's rulemaking would amend its existing regulations implementing the DCLA (Cal. Fin. Code §§ 100000 et seq.) to add sections addressing the scope, annual report, and bond amount increase provisions of the DCLA. The DFPI is soliciting public comments on the proposed rule until Monday, August 29, 2022.

The enactment of the DCLA marked the first time that California debt collectors were required to obtain a license from the DFPI. The California Legislature enacted the DCLA in September of 2020, and the statute became operative on January 1, 2022. In addition to the authority to enforce the Rosenthal Fair Debt Collection Practices Act (Rosenthal Act) and the Fair Debt Buying Practices Act (FDBPA),