General ProvisionsRequirements for Licensure

Section § 100001

Explanation

If you want to run a debt collection business in California, you need to get a specific license before you start. This is true whether you're based in California trying to collect from anyone, or based elsewhere trying to collect from someone in California. You only need one license for your main office.

Certain other financial institutions and roles, like banks and some licensed professionals, are not subject to this licensing requirement. Some legal protections and rules from the Civil Code do apply to these exempt groups, especially concerning specific consumer protections.

The law does not cover the collection of certain types of commercial debts or debts already regulated differently under another division.

(a)CA Financial Code § 100001(a) No person shall engage in the business of debt collection in this state without first obtaining a license pursuant to this division. To the extent permitted by federal law, a person is acting in this state if the person is located in this state and is seeking to collect from a debtor that resides inside or outside the state, or is located outside of the state and is seeking to collect from a debtor that resides in this state. A license shall be obtained for the licensee’s principal place of business and shall not be transferred or assigned. A separate license is not required for each individual branch office.
(b)Copy CA Financial Code § 100001(b)
(1)Copy CA Financial Code § 100001(b)(1) Except as provided in paragraph (2), this division shall not apply to a depository institution, as defined in Section 1420, a person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000), a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code, a person who is subject to the Karnette Rental-Purchase Act (Title 2.96 (commencing with Section 1812.620) of Part 4 of Division 3 of the Civil Code), or a trustee performing acts in connection with a nonjudicial foreclosure pursuant to Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3 of the Civil Code.
(2)CA Financial Code § 100001(b)(2) The commissioner may use the authority described in Section 100005 in connection with a violation of 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 by a person described in paragraph (1).
(c)CA Financial Code § 100001(c) This division shall not apply to debt collection regulated pursuant to Division 12.5 (commencing with Section 28100) or to the collection of covered commercial debt or covered commercial credit, as those terms are defined in Title 1.6C (commencing with Section 1788) of Part 4 of Division 3 of the Civil Code.
debt collection license principal place of business exempt financial institutions ...