California Debt Collection License Applications Will Be Available …

The California Commissioner of the Department of Financial Protection and Innovation (DFPI) announced on Friday that license applications required under the Debt Collection Licensing Act will be online through the Nationwide Multistate Licensing System and Registry. System (NMLS) September 1st. Applications will be due by December 31, 2021 at the latest and required from January 1, 2022,

The Debt Collector Licensing Act (DCLA), which comes into effect on January 1, 2022, requires anyone engaged in debt collection activity in California to be licensed by the DFPI.

California State Senator Bob Wieckowski D-Fremont’s DCLA (SB 908) was enacted by Governor Gavin Newsom in September 2020, as was legislation creating the DFPI, essentially a state version of Consumer Financial Protection. Office. . The DFPI includes oversight of debt collectors and emerging financial technology products, ACA International previously reported.

The request will ask for financial and other information about the licensee and should be submitted through the NMLS. In addition, applicants will be required to submit their fingerprints through the California Department of Justice’s live electronic fingerprint submission analysis service.

Applicants can continue to operate as a California debt collector while applications are pending. If you apply after December 31, 2021, you’ll need to wait for a license to be issued before you can operate in California, according to the DFPI.

The DFPI also reports that licensees wishing to continue their operations in California from January 1, 2022 should start gathering the necessary documents to apply now to ensure they are ready when applications become available. Failure to meet the deadline and continued unlicensed operation may result in enforcement action.

Meanwhile, the DFPI commissioner has proposed changes to a regulatory notice to adopt the license application and debt collection license application procedures under the DCLA, ACA reported previously.

Additions to proposed regulation are shown in double underline and deletions are shown in single strikethrough. The California Association of Collectors Inc. (CAC), which worked closely with Wieckowski and his team to amend SB 908 and subsequently supported the bill, is now advocating for changes to align the proposed requirements. in matters of collection agency license on the new state law.

The ACC responded to DFPI’s proposals on defining and registering a branch, working with sellers and sureties, among others, in comments filed with the agency in June.

The DFPI expects the final licensing rules, if passed, will come into effect on or around November 19, 2021. The Commissioner also plans to adopt additional regulations in 2022 in separate regulations that would specify, among others, requirements for keeping books and records, and surety bonds based on the volume of a licensee’s debt.

the The new DFPI debt collection advisory committee, also created under the DCLA, will hold its first meeting on July 28.

Several ACA members were appointed to the committee, including Tamar Yudenfreund, senior director of public policy at Encore Capital Group and chair of the ACA federal affairs committee; Scott Hyman, lawyer at Severson & Werson PC; Mark Naiman, President of Absolute Resolutions Corp. ; Cindy Yaklin, president of States Recovery Systems Inc. and the California Association of Collectors Inc. (CAC); and Ohad Samet, president of TrueAccord Corp.

The seven-member committee will provide critical feedback to DFPI as it creates its debt collection authorization program.

Visit the DFPI Debt Collector Webpage and Faq for more information.

License holders and interested applicants are also encouraged to periodically visit the DFPI website and subscribe to the DFPI website. email subscription service

For more information on how ACA’s licensing staff can help you complete your license applications, please contact us at [email protected] or call (952) 926-6547.

About Roberto Frank

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