CA SB 908 Debt collectors: licensing and regulation

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  • Terrence Evans
    OP
    Investor · Lomita, CA · Member since 2015 · 145 posts · 71 votes
    5y
    Who needs to apply???  (smh)

    (a) No person shall engage in the business of debt collection in this state without first obtaining a license pursuant to this division. To the extent permitted by federal law, a person is acting in this state if the person is located in this state and is seeking to collect from a debtor that resides inside or outside the state, or is located outside of the state and is seeking to collect from a debtor that resides in this state. A license shall be obtained for the licensee’s principal place of business and shall not be transferred or assigned. A separate license is not required for each individual branch office.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    5y

    These are good and bad. What is good is they weed out all the inexperienced individuals who also intentionally do not follow rules. States never envisioned banks would sell off loans which would eventually get down to individual investors. It is an added expense and in some states the costs are overburdening, so what happens is people do not get licensed and at the end of day try and fly under the radar.

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  • Alecia Bolton
    Investor · Seatac, WA · Member since 2017 · 134 posts · 121 votes
    5y

    That could be a bummer.  I'd wonder about sub-sections b1 & c of that same section.  There's a lot of other laws to look up to see who it doesn't apply to.

    100001.

    (b) (1) Except as provided in paragraph (2), this division shall not apply to a depository institution, as defined in Section 1420, a person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000), a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code, a person who is subject to the Karnette Rental-Purchase Act (Title 2.96 (commencing with Section 1812.620) of Part 4 of Division 3 of the Civil Code), or a trustee performing acts in connection with a nonjudicial foreclosure pursuant to Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3 of the Civil Code.

    (c) This division shall not apply to debt collection regulated pursuant to Division 12.5 (commencing with Section 28100).

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  • Andy Mirza
    Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    It looks like we're included in this because we fall under "debt buyers." More red tape, more burdens, more friction to doing business, more government imposed headaches to deal with. 

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  • Terrence Evans
    OP
    Investor · Lomita, CA · Member since 2015 · 145 posts · 71 votes
    5y

    Yep. But as Chris said, maybe it weeds out the newbies that aren't particularly serious about doing the biz the right way. This seems to be No worse than Georgia and some of the states back east.

    For me, the Question is how much will it cost?

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  • Andy Mirza
    Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    @Terrence Evans My comment was meant as a matter of principle. I don't believe that government should make things extra difficult. It places extra burdens on people without necessarily increasing the quality of their work. In my mind, it's a drag on the economy and hurts everybody while protecting only a few.

    Yes, it will probably weed out those that don't want to jump through those extra hoops.

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