Calif. Senate OKs Restrictions On Debt Collection Suits

Law360, New York (February 1, 2012, 6:46 PM EST) -- The California Senate on Tuesday passed legislation that would require debt buyers to verify the validity of a debt and ensure their collection efforts are directed toward the proper debtor for the right amount before obtaining a default judgment in collection suits.

The Senate voted 22-14 to pass S.B. 890, the Fair Debt Buyers Act of 2012, which was authored by Sen. Mark Leno, D-San Francisco, and sponsored by California Attorney General Kamala Harris.

According to Harris, purchasers of consumer debt have flooded California's courts and...
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