This title applies to persons providing payment processing services, debt settlement services, and persons purporting to engage in debt settlement services.
Fair Debt Settlement PracticesApplication of the Fair Debt Settlement Practices Act
Section § 1788.303
This law section is about businesses or individuals involved in payment processing or debt settlement services.
payment processing services debt settlement services engaging in debt settlement
Section § 1788.304
This section outlines who is not covered by specific debt laws. It doesn't apply to licensed financial entities like banks or credit unions, certified nonprofit organizations that don't charge consumers for debt help, attorneys and law firms under certain conditions, or credit associations that primarily serve community reporting functions. Essentially, if these groups meet the conditions specified, they don't have to follow the rules in this particular title about debt settlement.
This title does not apply to any of the following:
(a)CA Civil Law Code § 1788.304(a) Any person, or the person’s authorized agent, doing business under license and authority of the Commissioner of Financial Protection and Innovation under Divisions 1.1 (commencing with Section 1000), 2 (commencing with Section 5000), and 5 (commencing with Section 14000) of the Financial Code or under any law of this state or of the United States relating to banks or credit unions.
(b)CA Civil Law Code § 1788.304(b) Any nonprofit business organization that is certified as tax-exempt by the Internal Revenue Service and that does not receive compensation from the consumer for providing debt settlement services.
(c)CA Civil Law Code § 1788.304(c) Attorneys and law firms that meet all of the following criteria:
(1)CA Civil Law Code § 1788.304(c)(1) The attorney or law firm does not charge for services regulated by this title.
(2)CA Civil Law Code § 1788.304(c)(2) The fees and disbursements are not charges or costs shared, directly or indirectly, with a debt settlement provider.
(3)CA Civil Law Code § 1788.304(c)(3) Any of the following is true:
(A)CA Civil Law Code § 1788.304(c)(3)(A) The attorney or law firm is retained by a consumer for the purpose of legal representation in consumer debt litigation.
(B)CA Civil Law Code § 1788.304(c)(3)(B) The attorney or law firm provides debt settlement services pursuant to representation by retainer for a debt collection matter that does not involve consumer debt.
(C)CA Civil Law Code § 1788.304(c)(3)(C) The attorney or
law firm is retained by the consumer primarily for purposes other than the settlement of consumer debt.
(d)CA Civil Law Code § 1788.304(d) A merchant-owned credit or creditors association, or a member-owned, member-controlled, or member-directed association whose principal function is that of servicing the community as a reporting agency.
licensed financial entities Commissioner of Financial Protection nonprofit tax-exempt organization
