What Calif.'s New Consumer Debt Law Means For Collectors

Law360 (November 20, 2020, 1:46 PM EST) -- On Sept. 25, California Gov. Gavin Newsom signed Senate Bill 908, enacting the Debt Collection Licensing Act. The DCLA will take effect on Jan. 1, 2022, but proposed regulations will begin to roll out soon.

The act is one of several new consumer protection bills recently enacted in California, including the law that created the state's "mini-Consumer Financial Protection Bureau," otherwise known as the California Consumer Financial Protection Law. As the name makes clear, the DCLA provides for the licensure, regulation and oversight of entities seeking to collect consumer debts from California residents.

What does the DCLA mean for nonexempt debt...

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