On July 12, the Nationwide Multistate Licensing System & Registry published an announcement reminding debt collectors that all persons must apply for a license through the California Department of Financial Protection and Innovation by December 31, 2021. As previously covered by InfoBytes, last September, California enacted the Debt Collection Licensing Act, which requires a person engaging in the business of debt collecting in the state, as defined by the Act, to be licensed and provides for the regulation and oversight of debt collectors by DFPI. Under the Act, debt collection licenses will be required starting January 1, 2022; however, debt collectors who submit applications before January 1, 2022 will be allowed to operate while their applications are pending. However, a debt collector that submits an application after December 31 must wait for DFPI to issue a license before it can operate in the state. All required application materials must be submitted through NMLS, and NMLS reminded applicants that fingerprints must also be submitted to the California Department of Justice. The application will be available on NMLS beginning September 1.
Find continuing InfoBytes coverage on DFPI’s debt collector licensing requirements here.
This content originally appeared in Buckley’s Infobytes blog, a collection of news and alerts covering the financial services industry. To read more or have the Infobytes weekly newsletter delivered to your inbox, please visit infobytesblog.com.