Licensee Duties - - CA Financial

Section § 100018

If a licensed business has any changes in the information originally provided for obtaining its license, it must inform the commissioner in writing within 30 days of those changes. If the business intends to change its location, it must notify the commissioner at least 10 days before the move. Additionally, businesses can't operate under unapproved names when collecting debts. Lastly, if a business opens or relocates a branch office, they must inform the commissioner in writing within 30 days of starting at the new location.

(a) A licensee shall notify the commissioner, in writing, of any change in the information provided in the application for a license, as applicable, not later than 30 days after the occurrence of the event that results in the information becoming inaccurate or incomplete.

(b)

(1) If a licensee seeks to change its place of business to a street address other than that designated in its license, the licensee shall provide written notice to the commissioner at least 10 days prior to the change.

(2) A licensee shall not engage in the business of debt collection at a new location in a name other than a name approved by the commissioner.

(3) A licensee that opens a new branch office or changes the location of an existing branch office shall notify the commissioner in writing of the new or changed branch office location within 30 days after the branch office begins business.

change of business address licensee information change debt collection business commissioner notification branch office relocation business name approval information update deadline new branch office license application changes notification timeline operating under approved name business location change

(Added by Stats. 2020, Ch. 163, Sec. 3. (SB 908) Effective January 1, 2021. Operative January 1, 2022, pursuant to Sec. 100000.5.)

Section § 100019

This law outlines the obligations of a licensee under a specific division. The licensee must create policies for compliance, submit required reports, follow legal and regulatory provisions, and allow periodic examinations by the commissioner.

Additionally, the licensee must maintain a surety bond of at least $25,000, filed within 10 days of issuance, to cover potential expenses or fines. If a claim is made on the bond, the licensee has to secure a new bond within 10 days. Alternatively, a refundable deposit can be made while a new bond is obtained.

The commissioner can demand a higher bond if the licensee has many affiliates or collects a large amount of consumer debt.

A licensee shall do all of the following:

(a) Develop policies and procedures reasonably intended to promote compliance with this division.

(b) File with the commissioner any report required by the commissioner.

(c) Comply with the provisions of this division and any regulation or order of the commissioner.

(d) Submit to periodic examination by the commissioner as required by this division and any regulation or order of the commissioner.

(e) Maintain a surety bond in accordance with this section in a minimum amount of twenty-five thousand dollars ($25,000). The bond shall be payable to the commissioner and issued by an insurer authorized to do business in this state. The surety bond, including any and all riders and endorsements executed subsequent to the effective date of the bond, shall be filed with the commissioner within 10 days of execution. The bond shall be used for the recovery of expenses, fines, and fees levied by the commissioner in accordance with this division. The commissioner may require licensees to submit bonds, riders, and endorsements electronically through the Nationwide Multistate Licensing System & Registry’s electronic surety bond function.

(1) When an action is commenced on a licensee’s bond, the commissioner may require the filing of a new bond. Immediately upon recovery of any action on the bond, the licensee shall file a new bond. Failure to file a new bond within 10 days of the recovery on a bond, or within 10 days after notification by the commissioner that a new bond is required, constitutes sufficient grounds for the suspension or revocation of the license. A licensee may provide the commissioner a refundable deposit in the amount of twenty-five thousand dollars ($25,000) in lieu of the bond while the licensee pursues a new bond.

(2) The commissioner may require a higher bond amount for a licensee based on the number of affiliates under the license and the dollar amount of collecting consumer debt by that licensee.

licensee obligations compliance policies surety bond bond requirements commissioner reports periodic examinations bond replacement refundable deposit affiliates consumer debt collection bond execution higher bond requirement bond riders bond endorsements electronic surety bond

(Added by Stats. 2020, Ch. 163, Sec. 3. (SB 908) Effective January 1, 2021. Operative January 1, 2022, pursuant to Sec. 100000.5.)

Section § 100020

This law requires licensed businesses to pay a fair share of the costs for overseeing their industry, based on the income they earn from California debtor accounts. By September 30 each year, the regulator will inform each licensed business of their fee due by January 1. If they miss the payment deadline, they'll face a fine of 1% per month.

Each business must pay at least $250 and not more than the total reasonable operating costs. If a business doesn't pay on time, they risk having their license suspended or revoked. They can request a hearing within 30 days, and if it's not held within 60 days, the suspension or revocation is automatically canceled.

The commissioner can also require annual fees to be paid through a specific national system.

(a) Each licensee shall pay to the commissioner its pro rata share of all costs and expenses reasonably incurred in the administration of this division, as estimated by the commissioner, for the ensuing year and any deficit actually incurred or anticipated in the administration of the division in the year in which the annual fee is levied. The pro rata share shall be based upon the proportion of net proceeds generated by California debtor accounts in the preceding year after the amount levied pursuant to subdivision (c).

(b) On or before September 30 in each year, the commissioner shall notify each licensee of the amount of the annual fee schedule that will take effect on January 1. If payment is not made by January 1, the commissioner shall assess and collect a penalty, in addition to the fee, of 1 percent of the assessment for each month or part of a month that the payment is delayed or withheld.

(c) In the levying and collection of the annual fees, a licensee shall neither be charged for nor be permitted to pay less than two hundred fifty dollars ($250) nor more than an aggregate of all reasonable costs to operate this division, with the exception of fees associated with investigations and examinations.

(d) If a licensee fails to pay the annual fees on or before January 1, the commissioner may by order summarily suspend or revoke the license issued to the licensee. If, after an order is made, a request for hearing is filed in writing within 30 days, and a hearing is not held within 60 days thereafter, the order is deemed rescinded as of its effective date. During any period when the license is revoked or suspended, a licensee shall not engage in the business of collecting debt in this state pursuant to this division except as may be permitted by order of the commissioner. However, the revocation, suspension, or surrender of a license shall not affect the powers of the commissioner as provided in this division.

(e) Notwithstanding subdivisions (a) to (d), inclusive, the commissioner may by rule require licensees to pay annual fees through the Nationwide Multistate Licensing System & Registry.

license fee commissioner notification fee penalty debt collection business license suspension hearing request Nationwide Multistate Licensing System regulatory costs California debtor accounts fee payment deadline administrative costs license revocation pro rata share payment delay fine minimum fee requirement

(Added by Stats. 2020, Ch. 163, Sec. 3. (SB 908) Effective January 1, 2021. Operative January 1, 2022, pursuant to Sec. 100000.5.)

Section § 100021

If you're a licensee operating in California, you need to file an annual report by March 15 each year. This report should include specific details about the business activities over the past year, like how many debtor accounts you handled, how much money you made or are still owed, and whether you're a debt collector or buyer. You also have to reveal any legal cases where you were found liable. These reports are public and must be sworn statements in the format specified by the commissioner. Additionally, you may need to provide extra reports if requested.

(a) A licensee shall file an annual report with the commissioner, on or before March 15, that contains all relevant information that the commissioner reasonably requires concerning the business and operations conducted by the licensee in the state during the preceding calendar year, including information regarding collection activity. The report shall, at minimum, require disclosure of all of the following information:

(1) The total number of California debtor accounts purchased or collected on in the preceding year.

(2) The total dollar amount of California debtor accounts purchased in the preceding year.

(3) The face value dollar amount of California debtor accounts in the licensee’s portfolio in the preceding year.

(4) The total dollar amount of California debtor accounts collected in the preceding year, and the total dollar amount of outstanding debt that remains uncollected.

(5) The total dollar amount of net proceeds generated by California debtor accounts in the preceding year.

(6) Whether or not the licensee is acting as a debt collector, debt buyer, or both.

(7) The case number of any action in which the licensee was held liable by final judgment under Title 1.6C (commencing with Section 1788) or Title 1.6C.5 (commencing with Section 1788.50) of Part 4 of Division 3 of the Civil Code.

(b) The individual annual reports filed pursuant to this section shall be made available to the public for inspection.

(c) The report shall be made under oath and in the form prescribed by the commissioner.

(d) A licensee shall make other special reports that may be required by the commissioner.

annual report licensee requirements debt collection March 15 deadline debtor accounts California business operations outstanding debt debt buyer debt collector public inspection special reports net proceeds generated legal liability case numbers commissioner requirements oath statements

(Added by Stats. 2020, Ch. 163, Sec. 3. (SB 908) Effective January 1, 2021. Operative January 1, 2022, pursuant to Sec. 100000.5.)

Section § 100022

If a business stops collecting debts, they must notify the commissioner in writing and return their license and any related documents to the commissioner.

A licensee that ceases to engage in debt collection shall inform the commissioner in writing and surrender the license and all other indicia of license to the commissioner.

debt collector cease operations license surrender inform commissioner debt collection cessation commissioner notification business closure license return collection agency compliance regulatory requirement indicia of license writing notification licensee obligation

(Added by Stats. 2020, Ch. 163, Sec. 3. (SB 908) Effective January 1, 2021. Operative January 1, 2022, pursuant to Sec. 100000.5.)