AB 2825: Debt collection: practices.

Session Year: 2017-2018
House: Assembly

Version:

Existing law, the Rosenthal Fair Debt Collection Practices Act, is intended to prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and to require debtors to act fairly in entering into and honoring those debts. Existing law prohibits a debt collector from, among other things, collecting or attempting to collect a consumer debt by means of the use, or threat of use, of physical force or violence or any criminal means to cause harm to the person, or the reputation, or the property of any person.

This bill would expand the act to apply enact analogous provisions applicable to collections or attempts to collect a nonconsensual obligation to pay, which the bill would define to mean the charges underlying a lien created by operation of law, unpaid parking penalties, or past due residential rent and associated late fees, certain government debts and debts arising from towed or impounded vehicles, as specified. The bill would prohibit government and towing debt collectors, as defined, from engaging in specified collection practices and would require the person collecting to provide the debtor with specified information regarding the debt, including specified language requirements for the information provided.

Existing law makes it a crime, with respect to attempted collection of a consumer debt, for a debt collector, creditor, or an attorney, to send a communication that simulates legal or judicial process or that gives the appearance of being authorized, issued, or approved by a governmental agency or attorney if it is not.

This bill would expand that provision to make it a crime to engage in those act acts with respect to the collection of a nonconsensual obligation to pay. certain government debts and debts arising from towed or impounded vehicles. The bill would also establish civil penalties for violations and would authorize a consumer to bring a civil action against a debt collector or attorney who violates these provisions. By expanding a crime, the bill would impose a state-mandated local program.

Existing law requires a debt collector to stop collecting a consumer debt when an alleged debtor provides the debt collector certain information, including information relating to the debtors status as an alleged victim of identity theft. This information may also include a specified written statement that certifies that the representations are true, correct, and contain no material omissions of fact. A person submitting the certification who declares as true a material matter that the person knows to be false is guilty of a misdemeanor.This bill would expand those provisions to also apply in the case of collection of a nonconsensual obligation to pay. The bill would thereby expand the scope of a crime and impose a state-mandated local program.Existing law regulates the activities of a person or entity that has bought charged-off consumer debt, as defined, for collection purposes and the circumstances pursuant to which the person may bring suit. Existing law, among other things, prohibits a debt buyer, as defined, from making any written statement in an attempt to collect a consumer debt unless the debt buyer possesses information that the debt buyer is the sole owner or is authorized to assert the rights of all owners of the specific debt at issue, the debt balance, as specified, and the name and address of the creditor at the time the debt was charged off, among other things. This bill would expand those provisions to apply to the purchase of charged-off nonconsensual obligations to pay, as defined, for collection purposes.

Existing law authorizes certain individuals to cause the removal of a vehicle found upon a highway or public land or a vehicle parked on private property under specified conditions.

This bill would make a person who violates these provisions, with certain exemptions, liable for specified damages.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Discussed in Hearing