California’s Department of Financial Protection and Innovation has filed a notice of proposed rulemaking on April 23, 2021 for the Debt Collection Licensing Act (DCLA). The proposed regulations are to be added in Title 10, California Code of Regulations, Subchapter 11.3 “Debt Collection Licensing Act.” A copy of the proposed rulemaking text is here.
The proposed regulations cover: requirements to obtain a license, including for affiliates to use a single license; requirements for applicants to apply for a license and maintain the license through the Nationwide Multistate Licensing System & Registry (NMLS); the information required for the DFPI to investigate applicants; the processes for applicants to maintain a surety bond, to surrender a license, and to change information in the application; and acts that may constituted grounds for the DFPI to deny a license. We previously covered the passage of the DLCA here, which becomes effective January 1, 2022.
There is a 45-day public comment period for the proposed regulations that ends on June 8, 2021. The DFPI anticipates the final rules will become effective November 19, 2021, and debt collectors could begin to apply for a license before the January 1, 2022 deadline for debt collectors to obtain a license.