Debt Collectors: New Bill Would Protect Californians

ALAMEDA COUNTY, CA — State Senator Bob Wieckowski wants better protections for Californians from debt collectors. On Monday he introduced legislation to license the debt collection industry.

SB 908 would require that debt collectors and buyers get a license from the state Department of Business Oversight to collect on debts in the state.

“California licenses everyone from mattress renovators to barbers and cosmetologists, yet debt collectors, who can wreak havoc on a consumer’s finances, are not licensed,” said Wieckowski, a member of the Senate Judiciary Committee. “This glaring lack of oversight in the nation’s most populous state needs to end. This industry consistently violates consumer law and generated more than 400,500 consumer complaints between 2011 and 2018. We need a robust licensing requirement to enforce our laws and protect consumers.”

The most common complaint about debt collectors is they try to collect a debt not owed. Other complaints concern communication tactics and written notification.

If SB 908 passes, the state would respond to complaints from borrowers and enforce violations.

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