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The California statute is called the Rosenthal Fair Debt Collection Practices Act. Creditors and debt collection agencies are permitted to take reasonable steps to enforce and collect payment of debts. That is because an efficient and productive economy requires a credit process.

Regulating Debt Collectors The Department of Financial Protection and Innovation provides licensure, regulation, and oversight of California debt collection practices under the California Consumer Financial Protection Law and the Debt Collection Licensing Act . Both measures help to better protect consumers.

California Coerced Debt: California SB 975, for debts incurred after July 1, 2023, requires a collector to cease collection until it completes a review when the debtor provides documentation and a sworn statement that the debt was coerced.

However, they do have to abide by what was laid out in your original lending contract. This means if your credit card had an APR of 20%, they cannot exceed a charge of 20%. This keeps collection agency charges from skyrocketing and abusing the system.

Code § 100000.5(a) to ?allow any debt collector that submits an application [for a license] before January 1, 2023, to operate pending the approval or denial of the application.? The existing grace period provided by the DCLA had previously only covered applications that were submitted prior to January 1, 2022.

A debt collector may not collect any interest or fee not authorized by the agreement or by law. The interest rate or fees charged on your debt may be increased if your original loan or credit agreement permits it and no law prohibits the increase, or if state law expressly permits the interest or fee.