by admin | Jul 6, 2015 | CFDCPA |
1788. This title may be cited as the Rosenthal Fair Debt Collection Practices Act. 1788.1. (a) The Legislature makes the following findings: (1) The banking and credit system and grantors of credit to consumers are dependent upon the collection of just and owing debts. Unfair or deceptive collection practices undermine the public confidence which is essential to the continued functioning of the banking and credit system and sound extensions of credit to consumers. (2) There is need to ensure that debt collectors and debtors exercise their responsibilities to one another with fairness, honesty and due regard for the rights of the other. (b) It is the purpose of this title 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 such debts, as specified in this title. 1788.2. (a) Definitions and rules of construction set forth in this section are applicable for the purpose of this title. (b) The term "debt collection" means any act or practice in connection with the collection of consumer debts. (c) The term "debt collector" means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters, and other collection media used or intended to be used for debt collection, but does not include an attorney or counselor at law. (d) The term "debt" means money, property or their equivalent which is due or owing...
by admin | Jul 1, 2015 | CFDCPA |
The California Fair Debt Collection Practices Act: California residents are afforded additional protection from collection agencies under the California Fair Debt Collection Practices Act or CFDCPA, which is also commonly referred to as the Rosenthal Fair Debt Collection Practices Act (RFDCPA). Because of this law California covers a broader definition of debt collectors. Who must comply with the CFDCPA? • Collection Agencies • Anyone who collects consumer debts in the regular course of business • Companies which author forms and/or tools for debt collection • Attorneys and legal staff that collect debts • Original Creditors The CFDCPA is intended to regulate full time debt collectors or those who collect debt on a regular basis. Which means CFDCPA does not apply to every type of debt. Certain Debts and Debt Collectors are Not covered by the CFDCPA. What does this mean? Occasional Debt Collectors do not need to comply (If someone owes you money, but you do not collect debt for a living, you do not have to comply with CFDCPA) Non-consumer Credit transactions generally do not apply to CFDCPA regulations. In layman’s terms Debt incurred for the purposes of personal loans, buying property, or obtaining services for personal, family, or household needs would be subject to these regulations. However, debt incurred for the sake of or while operating your business will most likely not be subject to these regulations. Foreclosure may not be covered. If a mortgage provider or attorney is attempting to foreclose on your home the CFDCPA does not automatically apply. If you suspect the CFDCPA is being violated in a foreclosure on your home we recommend...
