Bill Text: CA SB1324 | 2021-2022 | Regular Session | Amended
Bill Title: Rosenthal Fair Debt Collection Practices Act: rental debt.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-19 - May 19 hearing: Held in committee and under submission. [SB1324 Detail]
Download: California-2021-SB1324-Amended.html
|
Amended
IN
Senate
April 21, 2022 |
|
Amended
IN
Senate
April 07, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1324
| Introduced by Senator Durazo |
February 18, 2022 |
An act to amend Sections 1788.2 and 1788.11 1788.2, 1788.11, and 1788.17 of the Civil Code, and to amend Section 100002 of the Financial Code, relating to debt collection.
LEGISLATIVE COUNSEL'S DIGEST
SB 1324, as amended, Durazo.
Rosenthal Fair Debt Collection Practices Act: rental debt.
Existing law, the Rosenthal Fair Debt Collection Practices Act (RFDCPA), generally regulates the collection of a consumer debt by a debt collector, as defined. The RFDCPA defines “consumer debt” to mean money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction.
Existing law, the Debt Collection Licensing Act (DCLA), prohibits a person from engaging in business as a debt collector in the state without a license from the Department of Financial Protection and Innovation. The DCLA requires the Commissioner of Financial Protection and Innovation to revoke or suspend a license for a violation of the RFDCPA. The DCLA defines the term “consumer credit transaction” to mean a transaction between a natural person and another person in which property, services, or
money is acquired on credit by that natural person from the other person primarily for personal, family, or household purposes.
This bill would define “consumer debt,” for purposes of the RFDCPA, to additionally include rental debt that became past due on or after January 1, 2019, and would make conforming changes. This bill would also specify that, for the purposes of the DCLA, the term “consumer credit transaction” does not mean a transaction that results in rental debt.
The RFDCPA requires every debt collector collecting or attempting to collect a consumer debt to comply with certain provisions of the federal Fair Debt Collection Practices Act (FDCPA), including certain provisions relating to mandatory disclosures.
This bill would additionally exempt a landlord collecting rent, as specified, from the requirement to comply with the provisions of the FDCPA referenced above related to mandatory disclosures.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1788.2 of the Civil Code is amended to read:1788.2.
(a) Definitions and rules of construction set forth in this section are applicable for the purpose of this title.(b) The term “debt collection” means any act or practice in connection with the collection of consumer debts.
(c) The term “debt collector” means any person who, in the ordinary course of business, regularly, on behalf of that person or others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters, and other collection media used or intended to be used for debt collection.
(d) The
term “debt” means money, property, or their equivalent that is due or owing or alleged to be due or owing from a natural person to another person.
(e) The term “consumer credit transaction” means a transaction between a natural person and another person in which property, services, or money is acquired on credit by that natural person from the other person primarily for personal, family, or household purposes.
(f) “Consumer credit” means money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction.
(g) The term “person” means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association,
or other similar entity.
(h) Except as provided in Section 1788.18, the term “debtor” means a natural person from whom a debt collector seeks to collect a consumer debt that is due and owing or alleged to be due and owing from such person.
(i) The term “creditor” means a person who extends consumer credit to a debtor.
(j) The term “consumer credit report” means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing
the consumer’s eligibility for (1) credit or insurance to be used primarily for personal, family, or household purposes, or (2) employment purposes, or (3) other purposes authorized under any applicable federal or state law or regulation. The term does not include (a) any report containing information solely as to transactions or experiences between the consumer and the person making the report; (b) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or (c) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys that person’s decision with respect to that request, if the third party
advises the consumer of the name and address of the person to whom the request was made, and the person makes the disclosures to the consumer required under any applicable federal or state law or regulation.
(k) The term “consumer reporting agency” means any person that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer credit reports to third parties and uses any means or facility for the purpose of preparing or furnishing consumer credit reports.
(l) “Consumer debt” means either of the following:
(1) Money, property, or their equivalent, due or owing, or alleged to be due or owing, from a natural person by reason of a consumer credit transaction, including a mortgage debt.
(2) Rental debt that became past due on or after January 1, 2019.
(m) “Rental debt” means unpaid rent or any other unpaid financial obligation of a tenant under a tenancy.
(n) This title shall not be construed to require a landlord or a landlord’s employee to provide any notice, disclosure, or validation of rental debt unless that notice, disclosure, or validation of rental debt is otherwise required by law.
SEC. 2.
Section 1788.11 of the Civil Code is amended to read:1788.11.
A debt collector shall not collect or attempt to collect a consumer debt by means of the following practices:(a) Using obscene or profane language.
(b) (1) Placing a telephone call without disclosing the caller’s identity, provided that an employee of a licensed collection agency may identify oneself by using their registered alias name if they correctly identify the agency that they represent.
(2) (A) A debt collector placing a telephone call as described in this subdivision shall provide its California debt collector license number upon the
consumer’s request.
(B) This paragraph applies only to a debt collector, as defined in Section 100002 of the Financial Code.
(c) Causing expense to any person for long distance telephone calls, telegram fees, or charges for other similar communications, by misrepresenting to the person the purpose of the telephone call, telegram or similar communication.
(d) Causing a telephone to ring repeatedly or continuously to annoy the person called.
(e) Communicating, by telephone or in person, with the debtor with such frequency as to be unreasonable, and to constitute harassment of the debtor under the circumstances.
(f) (1) Sending written or digital communication to the person that does not display the California license number of the collector in at least 12-point type.
(2) This subdivision applies only to a debt collector, as defined in Section 100002 of the Financial Code.
SEC. 3.
Section 1788.17 of the Civil Code is amended to read:1788.17.
(a) Notwithstanding any other provision of this title, every debt collector collecting or attempting to collect a consumer debt shall comply with the provisions of Sections 1692b to 1692j, inclusive, of, and shall be subject to the remedies in Section 1692k of, Title 15 of the United States Code.(b) Notwithstanding subdivision (a), subsection (11) of Section 1692e and Section 1692g of Title 15 of the United States Code shall not apply to either of the following:
(1) A person specified in paragraphs (A) and (B) of subsection (6) of Section 1692a of Title 15 of the United States Code or that person’s principal.
(2) A landlord collecting rent, including, but not limited to, any attempt to recover unpaid rent through an unlawful detainer, small claims, or civil court action.
(c) The references to federal codes in this section refer to those codes as they read on January 1, 2001.
SEC. 3.SEC. 4.
Section 100002 of the Financial Code is amended to read:100002.
For purposes of this division, the following terms have the following meanings:(a) “Applicant” means a person who applied for a license pursuant to this division.
(b) “California debtor accounts” means accounts that are owned by consumers who reside in California at the time that the consumer makes a payment on the account.
(c) “Collection agency” means a business entity through which a debt collector or an association of debt collectors engage in debt collection.
(d) “Commissioner” means the Commissioner of Business Oversight.
(e) (1) “Consumer credit transaction” means a transaction between a natural person and another person in which property, services, or money is acquired on credit by that natural person from the other person primarily for personal, family, or household purposes.
(2) “Consumer credit transaction” does not mean a transaction that results in rental debt, as defined in Section 1788.2 of the Civil Code.
(f) “Consumer debt” or “consumer credit” means money, property, or their equivalent, due or owing, or alleged to be due or owing, from a natural person by reason of a consumer credit transaction. The term “consumer debt” includes a mortgage debt. The term “consumer debt” includes “charged-off consumer
debt” as defined in Section 1788.50 of the Civil Code.
(g) “Creditor” means a person who extends consumer credit to a debtor.
(h) “Debt” means money, property, or their equivalent that is due or owning or alleged to be due or owing from a natural person to another person.
(i) “Debt collection” means any act or practice in connection with the collection of consumer debt.
(j) “Debt collector” means any person who, in the ordinary course of business, regularly, on the person’s own behalf or on behalf of others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters and other
collection media used or intended to be used for debt collection. The term “debt collector” includes “debt buyer” as defined in Section 1788.50 of the Civil Code.
(k) “Debtor” means a natural person from whom a debt collector seeks to collect a consumer debt that is due or owing or alleged to be due or owing from the person.
(l) “Department” means the Department of Business Oversight.
(m) “Fund” means the Debt Collection Licensing Fund established pursuant to Section 100006.5.
(n) “Licensee” means a person licensed pursuant to this chapter.
(o) “Nationwide Multistate Licensing System & Registry” means a
system of record, created by the Conference of State Bank Supervisors and the American Association of Residential Mortgage
Regulators, for nondepository, financial services licensing or registration in participating state agencies, the District of Columbia, Puerto Rico, the United States Virgin Islands, and Guam.
(p) “Person” means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity.
