September 1 started a ticking clock for collectors working in California or collecting from individuals living in California, giving those companies four months to submit their application for a license from the state’s Department of Financial Protection and Innovation. Collectors must submit their applications prior to Jan. 1, 2022 in order to continue operating in California.
AccountsRecovery.net hosted a webinar on the licensing application, which was sponsored by Cornerstone Support. Here is a recording of the event.
Companies planning on applying for a license may do so via the Nationwide Multistate Licensing System.
California was one of about 15 states that did not require collectors to have licenses, but that will change come January 1.
To help companies assemble all the needed information and documents, the DFPI has created a checklist and set of Frequently Asked Questions. AccountsRecovery.net and Cornerstone will also be partnering on another webinar, likely to be held in early October, to answer questions about the application process.
Collectors that file an application on or before December 31 can continue to operate while the application is pending. Collectors that wait until after December 31 to submit their application will have to wait for it to be approved before they can collect.
“This is a win for California consumers and positions us alongside a growing number of states who offer direct oversight of the industry,” said DFPI Senior Deputy Commissioner of the Consumer Financial Protection Division Suzanne Martindale, in a statement. “The Department will now have the authority to review financial information from prospective licensees, conduct formal examinations, and pursue legal action against those whose engage in unfair, deceptive, or abusive acts or practices or violate California’s fair debt collection laws.”
