California DFPI seeks comments on changes …
The Commissioner of the California Department of Financial Protection and Innovation (DFPI) has released changes to the license application and debt collection license application procedures under the Debt Collection Licensing Act and is seeking comments on the proposed changes until ‘until November 30, 2021..
The Debt Collection Licensing Act, which comes into effect on January 1, 2022, requires anyone doing debt collection activity in California to be licensed by the DFPI, ACA International reported previously.
On April 23, 2021, the Commissioner issued a regulatory notice to adopt the license application and the debt collection license application procedures under the Debt Collection License Act. On June 23, 2021, the Commissioner issued a notice of modification to this regulatory measure.
Additional proposed rule changes available for comment were introduced on November 15.
The changes proposed for this second 15-day notice are indicated in bold underline for additions and
daring strikethrough for deletions.
It should be noted that the DFPI is proposing these changes to clarify the definition of a debt collection branch:
“Branch” means a place other than that of the applicant or license holder main establishment identified in a license application or amended application whether the activity related to debt collection takes place at the location and the location is presented to the public as a business location or the money is received at the location or held at the location. For the purposes of filing a MU3 form, holding a location to the public includes receiving postal correspondence from the public at the location, meeting with the public at the location, including the location on maps visitation, letterhead or other correspondence including signage at the location, or any other statement to the public that the location is a business location of the applicant or licensee.
It also simplifies the language for the definition of a debt collector by stating that the definition follows what is listed in the California Financial Code, subdivision (j) of section 100002.
The California Association of Collectors Inc. (CAC) has submitted comments on the licensing law since its inception, including a response to DFPI’s proposals on defining and registering a branch, working with vendors and Bonds, among other things, in comments filed with the agency earlier this year, the ACA reported previously.
The full proposed changes open for comment are available on the DFPI website here.
Submit comments by:
- Send to [email protected], Where
- Mail addressed to the Department of Financial Protection and Innovation; Attention: Sandra Sandoval; 300 S. Spring Street, Suite 15513, Los Angeles, CA 90013.
Meanwhile, the DFPI launched a new Consumer Financial Protection Division webpage with information on student loans, debt collection, California’s Consumer Financial Protection Act, and new people covered, as well. as key links for consumers.
License renewals are due in most states by December 31, and state regulators are encouraging individuals and businesses to start the process early.
The Nationwide Multistate Licensing System offers free online courses and state-specific checklists to guide licensees through the process, available on the annual renewal page of the NMLS Resource Center. The renewal period in most states runs from November 1 to December 31.
For For more information on how the ACA licensing staff can help you complete your license applications, please contact us at [email protected] or call (952) 926-6547.
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