Recently, the California DFPI adopted updated regulations concerning the state’s Debt Collection Licensing Act. The DFPI established definitions and specific requirements for the term “net proceeds generated by California debtor accounts” and further detailed the requirements for the annual report mandated by Financial Code section 100021. The regulations included amendments to Section 1850, which defined terms such as “affiliate,” “applicant,” “branch office,” and “debt buyer,” among others. It also clarified the meaning of “net proceeds generated by California debtor accounts” for different categories of debt collection activities. Additionally, a new Article 6 was introduced, which focused on annual reports, and provided that these reports must be submitted electronically by licensees with an attestation of accuracy by a principal officer. The report must include the total number of California debtor accounts collected in various categories, the total dollar amount of accounts purchased, and the face value dollar amount of accounts in the licensee’s portfolio. The regulations are aimed at implementing, interpreting and making specific the provisions of the Debt Collection Licensing Act to ensure compliance and transparency in debt collection activities within California.
