The Debt Collection Licensing Act generally regulates the business of debt collection and prohibits a person from engaging in the business of debt collection in this state without first obtaining a license pursuant to the act. The act requires a license to be obtained for a licensee’s principal place of business and does not require separate licenses for each individual branch office. The act exempts specified persons and activities from its provisions. The act prescribes the duties and powers of the Commissioner of Financial Protection and Innovation, which includes revoking or suspending any license for a violation of the Fair Debt Collection Practices Act or specified fair debt buying practices provisions. The act requires an applicant to, among other things, pay an application fee of $350 and an annual fee based on a prescribed formula, as specified. The act also requires a licensee to file an annual report with prescribed information, including the total or face dollar amount of various kinds of accounts. The act also requires the commissioner to conduct prescribed examinations as often as the commissioner deems necessary and appropriate, and authorizes the commissioner to conduct those examinations electronically, as specified. The act also establishes the Debt Collection Advisory Committee to advise the commissioner on matters relating to debt collection or the debt collection business, as specified.

This bill would rename the act to the Debt Collector Licensing Act. The bill would instead require a single license for a licensee’s business and not require separate licenses for each individual branch office, facility, affiliate, or subsidiary of the licensee. This bill would exempt additional persons and activities from the act’s provisions. The bill would also limit the commissioner’s power to suspend a license for a violation of the Fair Debt Collection Practices Act or specified fair debt buying practices provisions if the violation has been adjudicated by a court. The bill would also increase the application fee to $1,000 and change the annual fee to $1,000, $4,000, or $7,000 based on the number of California debtor accounts in active collection, as specified. The bill would remove the requirement to report information regarding total or face dollar amounts of various kinds of accounts referenced above. The bill would require the commissioner to conduct examinations remotely unless an onsite examination is considered necessary for the protection of the public, as specified. The bill would also rename the Debt Collection Advisory Committee as the Debt Collection Advisory Board, require the commissioner to request the advice of the board before the initial publication or adoption of fee schedules or a proposed regulation, except as specified, and exempt the board from the Bagley-Keene Open Meeting Act. The bill would also make other technical and conforming changes.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.