On Sep. 11, CAL LEG enrolled bill re fair debt collection practices act.
CAL LEG enrolled Bill SB 1286 to amend Rosenthal fair debt collection practices act.
Act prohibits debt collectors from engaging in unfair/deceptive actions when collecting consumer debts, and requires debtors to act fairly in entering into or honoring debts.
Fair Debt Collection Practices
Bill expands scope of act's provisions to prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of covered commercial debts.
Applies to debts entered into, renewed, sold, or assigned on or after Jul. 1, 2025.
Revises definition of delinquent debt to mean covered debt, other than mortgage debt.
Applies to delinquent covered commercial debt sold or assigned on/after Jul. 1, 2025.
Authorizes debt collector to collect or attempt to collect covered commercial debt by means of a judicial proceeding in the county in which the nonnatural person is located.
The bill would also specify that the provisions related to judicial proceedings apply to all delinquent covered commercial debt sold or assigned on or after Jul. 1, 2025.
Makes it a crime to to send a communication that simulates legal or judicial process or that gives the appearance of being sent by an agency or attorney when it is not.
The act does not create or impose additional licensing requirement on a debt collector.
Incorporates additional changes to CAL LEG 3-4-1.6C-2-1788.14 proposed by SB 1061 to be operative only if this bill and SB 1061 are enacted and this bill is enacted last.
