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ARTICLE · 18 MARCH 2025

DFPI Finalizes Debt Collection Licensing Regulations, Effective July 1

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On March 4, the California DFPI finalized regulations under the Debt Collection Licensing Act (DCLA). The final regulations, which take effect July 1, 2025, clarify key licensing and reporting requirements.

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Beineng Zhang
Beineng Zhang
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On March 4, the California DFPI finalized regulations under the Debt Collection Licensing Act (DCLA). The final regulations, which take effect July 1, 2025, clarify key licensing and reporting requirements.

Under the DLCA, debt collectors operating in California must be licensed by the DFPI. The law also requires licensed debt collectors to submit annual reports and pay a pro rata assessment to fund DFPI's oversight of the industry. The final regulations provide critical definitions and reporting requirements to ensure compliance with these obligations.

The DFPI's final regulations make several key clarifications, including:

  • Definition of "Net Proceeds". The regulations establish how debt collectors must calculate net proceeds generated by California debtor accounts, which determines their annual pro rata assessment

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