California Debt Collectors License

The Debt Collector Licensing Act (Fin. Code § 100000 et seq.) (DCLA), which takes effect Jan. 1, 2022, requires any person engaging in the business of debt collection in California to obtain a California Debt Collectors License, issued by the California Financial Protection and Innovation (DFPI). (Fin. Code § 100001(a)). If you are a debt collector collecting debt in the state of California you must submit an application on or before Friday, Dec. 31, 2021. Once you have submitted your application, you may continue operating as a debt collector in California while your application is pending. If you submit an application after this date, you will be required to wait for the issuance of a license before you can operate in California. (Fin. Code § 100000.5(c)). A surety bond in the amount of $25,000 is required to obtain the license. You can apply for bond by clicking here.

The application for the California Debt Collectors License will request financial and other information and will need to be submitted via the Nationwide Multistate Licensing System & Registry (NMLS). In addition, applicants will need to submit fingerprints through the California Department of Justice’s electronic fingerprint submission Live Scan Service. The application will be available on NMLS starting Sept. 1, 2021.

For further information about California Debt Collectors License requirements please refer to the DFPI’s Debt Collectors web page and FAQs. The DFPI looks forward to reviewing applications and welcoming our new licensees.

If you wish to continue operating as a debt collector in California starting from Jan. 1, 2022, the DFPI strongly recommends that you start gathering the necessary information to ensure timely filing of your application by the Dec. 31, 2021, deadline. Failure to submit an application by this deadline and continued operation without a license may result in enforcement actions.

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