Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to amend and pass a bill that requires debt collectors to register with the California Department of Business Oversight.

Highlights:

• Requires debt collectors to display or disclose their license number when calling or emailing debtors (Sec. 1). 

• Requires debt buyers to provide debtors proof of owing debt within 15 days from a debtor’s request for proof (Sec. 1). 

• Prohibits anyone from attempting or engaging in debt collecting without first obtaining a license by the state of California and if it does one of the following (Sec. 3):

• Use of profane language;

• Places a call without showing the caller’s identity and if asked the collector must provide a California debt collector license;

• Causes expense to any person for long-distance phone calls or telegram fees and charges; 

• Causes a telephone to ring repeatedly to annoy person called or harass a person with frequent calls; or 

• Sends a written communication to a person that does not display the California license number in 12-pt font.

• Authorizes the Commissioner of the Department of Business Oversight to do the following (Sec. 3):

• To keep records of licenses;

• To receive, consider, investigate and act upon a complaint made in connection with a licensee;

• To prescribe the form of and to receive applications for licenses and reports, books, and records;

• To subpoena documents and witnesses and require the production of any relevant materials to an inquiry; and

• To levy fees, fines, and charges that cover any cost of the services performed by the Department.

• Authorizes the Commissioner to establish relationships or contracts with the Nationwide Multistate Licensing System & Registry to collect and maintain records and process transaction fees related to licensees (Sec. 3). 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires the licensure, regulation, and oversight of debt collectors.

Highlights:

• Requires debt collectors to display or disclose their license number when calling or emailing debtors (Sec. 1). 

• Requires debt buyers to provide debtors proof of owing debt within 15 days from a debtor’s request for proof (Sec. 1). 

• Prohibits anyone from engaging in debt collecting without first obtaining a license by the state of California (Sec. 3). 

• Authorizes the Commissioner of the Department of Business Oversight to do the following (Sec. 3):

• To keep records of licenses;

• To receive, consider, investigate and act upon a complaint made in connection with a licensee;

• To prescribe the form of and to receive applications for licenses & reports, books, and records;

• To subpoena documents and witnesses and require the production of any relevant materials to an inquiry; and

• To levy fees, fines, and charges that cover any cost of the services performed by the Department.

• Authorizes the commissioner to establish relationships or contracts with the Nationwide Multistate Licensing System & Registry to collect & maintain records and process transaction fees related to licensees (Sec. 3). 

Full Bill Text