Debt collection practices and abuses in California are covered under AB 1864, the California Consumer Financial Protection Law (CCFPL), and SB 908, the Debt Collection Licensing Act, which provides for the licensure, regulation, and oversight of California debt collectors by the Department of Financial Protection and Innovation.  Both measures passed and were signed into law in 2020. The CCFPL took effect on Jan. 1, 2021, but SB 908 does not take effect until Jan. 1, 2022. Debt collectors are among the new financial service providers covered starting Jan. 1, 2021 under the CCFPL.

In addition, SB 908 – the Debt Collection Licensing Act – requires debt collectors and buyers to apply for a DFPI license by Dec. 31, 2021. There are some exemptions to the licensing requirements.  Debt collectors and buyers who apply for a license after that date will be required to wait for the issuance of a license before they can operate in California. The DFPI  accepts license applications through the NMLS platform.

DFPI expects to review applications and issue licenses in 2022 and 2023. Once licensed, debt collectors will not need to register under the CCFPL.

DFPI plans to prepare multiple rulemaking packages to implement the new law. The Department is in the process of drafting regulations related to the license application process.


  • Advice about debt collection licensing requirements and exemptions to California debt collectors and debt buyers.
  • Assistance with obtaining a California Debt Collection License from DFPI.
  •   Drafting contracts and legal documents to comply with CCFPL SB 908, the Debt Collection Licensing Act, Rosenthal Fair Debt Collection Practices Act, and other applicable California and federal laws.
  •     Representation in transactional and administrative matters.
  •  Representation in investigations and enforcement actions before DFPI and CFPB.
  • We do not represent consumers.   We only represent California debt collection companies and buyers  (companies operating from California or serving California customers)