New California Debt Collection Licensure Law

On September 25, 2020, Governor Newsom signed into law Senate Bill 908, which, in part, enacts the California Debt Collection Licensing Act (“Act”).  Effective January 1, 2022, the Act will require the licensure of persons that engage in debt collection in California with California residents.  Importantly, the Act also applies to entities collecting debt on their own behalf.  The Act’s requirements are in addition to those arising under the California Rosenthal Fair Debt Collection Practices Act (the “Rosenthal Act”), which regulates the practices of debt collectors.

This is a very significant development for creditors in California.  Below is a link to an article summarizing this new law:

California Enacts Debt Collector Licensure Law | Alston & Bird – JDSupra

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