In September 2024, SB 1286 was enacted, which impacts the collection of certain commercial debt in California. The law extends the California Rosenthal Fair Debt Collection Practices Act (California FDCPA) to certain covered commercial debt. As a reminder, unlike the federal Fair Debt Collection Practices Act, the California FDCPA applies to a debt collector collecting on its own debt. Thus, financial institutions collecting on its own covered commercial debt will now need to comply with protections which were previously afforded only to consumers. The law becomes applicable to covered commercial debt which is entered into, renewed, sold, or assigned on or after July 1, 2025.

 

Join us for the February Monthly Telephone Briefing where we will discuss SB 1286 in detail, including what debt is and is not covered by the new law. We will also provide a refresher on what is required of a debt collector collecting debt under the California FDCPA, and what conduct is prohibited. Download Handout Here!