California · State law

California Rosenthal Fair Debt Collection Practices Act

California’s debt collection statute — and unlike the federal Act, it reaches a creditor collecting its own debt. If your association has handed your account to a collection agency and the balance it is demanding makes no sense, § 1788.14.5 lets you force an itemisation in 30 days and stops collection cold if the agency misses the deadline.

Cal. Civ. Code Title 1.6C · 1.6C.5 §§ 1788–1788.33 · 1788.50–1788.66 32 Sections
What this means for homeowners

The Rosenthal Fair Debt Collection Practices Act (Civ. Code §§ 1788–1788.33) is California’s answer to the federal Fair Debt Collection Practices Act, and it is broader in one way that matters enormously. This page also hosts the Fair Debt Buying Practices Act (§§ 1788.50–1788.66), which governs anyone who bought a delinquent account — it is here because Civ. § 1788.50(c) provides that “terms defined in Title 1.6C … shall apply to this title,” so the two run on one set of definitions.

First, the honest part: does it cover an HOA assessment?

The statute does not say, and this page will not pretend otherwise. Here is exactly what it does say, so you can see where the argument runs.

  • An association is a “person.” The term “means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity” (Civ. § 1788.2(g)).
  • A creditor collecting its own debt is a “debt collector.” This is the big difference from federal law: the term means any person who in the ordinary course of business regularly, “on behalf of that person or others,” engages in debt collection (Civ. § 1788.2(c)). Federal law generally exempts a creditor collecting for itself. Rosenthal does not.
  • But the debt still has to be a covered one. “Consumer debt” is money owed by a natural person by reason of a consumer credit transaction, which is a transaction in which property, services or money is acquired on credit by a natural person primarily for personal, family, or household purposes (Civ. § 1788.2(e), (f)).

Whether regular or special assessments fit that definition is a question courts decide, and nothing in the Davis-Stirling Act cross-references Rosenthal — we checked the whole Civil Code for a link and there is none. So treat the rest of this page as: if the debt is covered, here is what the collector may not do. Where your association has hired an outside collection agency or law firm, that agency is squarely a debt collector on anyone’s reading — though the debt it is collecting still has to clear the “consumer debt” gate above before the prohibitions bite.

The provision worth the whole page: force an itemisation

If a balance has ballooned past what you think you owe, Civ. § 1788.14.5 is the lever. It applies to a debt collector to which delinquent debt has been assigned — and “delinquent debt” means a covered debt, other than a mortgage, that is past due at least 90 days and has not been charged off (Civ. § 1788.14.5(g)). That is the ordinary posture of an assessment account handed to a collection agency.

On your written request, the collector must give you, without charge and within 30 calendar days (Civ. § 1788.14.5(c)):

  • That it has authority to assert the creditor’s rights to collect the debt.
  • The debt balance with an explanation of the amount, nature and reason for all interest and fees — and the explanation must identify separately the balance, the total of any interest, and the total of any fees.
  • The date the debt became delinquent, or the date of the last payment.
  • The creditor’s name, an address, and the account number.
  • Your name and last known address as they appeared in the creditor’s records before the debt was assigned, and the names and addresses of anyone the debt was assigned to since.

And the sanction. If the collector cannot produce it within 30 calendar days, it “shall cease all collection of the debt until” it does (Civ. § 1788.14.5(c)(2)). Not a penalty you have to sue for — a stop.

Why the separation of balance, interest and fees matters so much in an HOA case: Davis-Stirling caps late charges at 10% of the delinquent assessment or $10, whichever is greater, and interest at 12% annually running only from 30 days after the assessment came due (Civ. § 5650(b)) — and the $1,800 foreclosure floor at Civ. § 5720(b) counts assessments only, excluding accelerated assessments, late charges, fees, collection costs, attorney’s fees and interest — and it falls away entirely once the assessments secured by the lien are more than 12 months delinquent (Civ. § 5720(b)(2)). An itemisation that separates those three numbers is how you find out whether either line has been crossed.

What a collector may not do

  • Charge you for its own collection costs unless the law allows it. No collecting “the whole or any part of the debt collector’s fee or charge for services rendered, or other expense incurred by the debt collector in the collection of the covered debt, except as permitted by law” (Civ. § 1788.14(b)).
  • Represent that charges can be added when they cannot. It is unlawful to make a false representation that the debt may be increased by attorney’s fees, investigation fees, service fees, finance charges or other charges if those charges may not legally be added to the obligation (Civ. § 1788.13(e)). Read that next to the Davis-Stirling caps above.
  • Keep contacting you once a lawyer has written in. No initiating communications other than statements of account after written notice from your attorney giving their name and address and asking that everything go to them — unless the attorney does not respond (Civ. § 1788.14(c)).
  • Publish a delinquency list naming you. No communicating to any person “any list of debtors that discloses the nature or existence of a covered debt, commonly known as ‘deadbeat lists’” (Civ. § 1788.12(c)). Nor sending you mail that shows more than the names, addresses and phone numbers involved and is intended to be seen by others and to embarrass you (Civ. § 1788.12(d)).
  • Tell your family. No communicating information about a consumer debt to family members other than a spouse, or a parent or guardian of a debtor who is a minor or lives with them, before judgment — except to locate you (Civ. § 1788.12(b)).
  • Call you into the ground. No causing a phone to ring repeatedly to annoy, and no communicating “with such frequency as to be unreasonable, and to constitute harassment” (Civ. § 1788.11(d), (e)). Written or digital communications must display the collector’s California licence number in at least 12-point type where applicable (Civ. § 1788.11(f)).
  • Threaten what it will not or cannot do. No threatening arrest, seizure, garnishment, attachment or sale unless that action is actually contemplated and permitted by law (Civ. § 1788.10(e)); no false claim that a legal proceeding has been or is about to be instituted (Civ. § 1788.13(j)); no falsely claiming the debt is about to be sold or referred out (Civ. § 1788.13(k)).
  • Dress a letter up as a court document. Sending a communication that simulates legal or judicial process, or appears to be authorised by a government agency or attorney when it is not, is a misdemeanor — up to six months in county jail, a $2,500 fine, or both (Civ. § 1788.16). This one binds a creditor and an attorney too, not only a collection agency.
  • Sue you in the wrong county. Collection by judicial proceeding — on a debt not yet reduced to judgment — must be brought in the county where the debt was incurred or where you reside now or resided when it was incurred (Civ. § 1788.15(b)) — and no proceedings at all where the collector knows service of process was never legally effected (Civ. § 1788.15(a)).
  • Chase a time-barred debt without saying so. A written communication on a time-barred debt must carry one of two notices set out word for word in the statute, beginning “The law limits how long you can be sued on a debt” (Civ. § 1788.14(d)).
  • Keep going after an identity theft report. On receipt of an FTC identity theft report or a police report plus the other items listed, the collector shall cease collection activities until it completes the review the section requires (Civ. § 1788.18).

Federal law is folded in. Civ. § 1788.17: every debt collector collecting a consumer debt shall comply with 15 U.S.C. §§ 1692b to 1692j and is subject to the remedies in 15 U.S.C. § 1692k. That imports the federal validation notice, the cease-communication right and federal statutory damages. Note the carve-out written into the same sentence: 15 U.S.C. § 1692e(11) and § 1692g do not apply to the persons described in 15 U.S.C. § 1692a(6)(A) and (B) or their principals, and the federal references are frozen as those codes read on January 1, 2001.

If someone bought the debt

A debt buyer is a person regularly in the business of purchasing charged-off consumer debt for collection (Civ. § 1788.50(a)(1)). If your account was sold rather than merely assigned, a second set of duties applies and they are strict.

  • It may not write to you at all unless it already possesses the seven items in Civ. § 1788.52(a) — sole ownership or authority, the balance at charge off with post-charge-off interest and fees identified separately, the date of default or last payment, the charge-off creditor’s name, address and account number, your last known address in those records, every subsequent purchaser, and its California licence number — and unless it has access to a document evidencing your agreement to the debt (Civ. § 1788.52(b)).
  • 15 days to produce it. On written request it must provide that information without charge within 15 calendar days, and if it cannot, it shall cease all collection until it does (Civ. § 1788.52(c)). Its first written communication must carry a separate prominent notice in no smaller than 12-point type telling you that you may request exactly those records (Civ. § 1788.52(d)).
  • It may not sue on a time-barred debt at all. “A debt buyer shall not bring suit or initiate an arbitration or other legal proceeding to collect a consumer debt if the applicable statute of limitations on the debt buyer’s claim has expired” (Civ. § 1788.56).
  • Its complaint has to say nine specific things and attach the contract (Civ. § 1788.58(a), (b)).
  • No default judgment on thin paper. No default or other judgment may be entered unless authenticated business records and the contract have been submitted by sworn declaration; and if the debt buyer has not complied with the title, the court shall not enter a default judgment and may dismiss the action (Civ. § 1788.60).
  • A late escape from a default judgment. Where service never gave you actual notice in time to defend, you may move to set aside the default and defend — within a reasonable time, and in no event later than the earlier of six years after entry of the default or default judgment or 180 days after your first actual notice of the action (Civ. § 1788.61(a)(2)) — in practice the 180-day cap is the one that binds.
  • Receipts. Settlements must be documented in open court or in writing with a copy to you, and any payment must be followed by a receipt or statement within 30 calendar days showing the amount, date, payee, account numbers and remaining balance (Civ. § 1788.54).

What you can recover, and the clock

Under Rosenthal (Civ. § 1788.30): actual damages for any violation; and for a willful and knowing violation, an additional penalty not less than $100 nor greater than $1,000. The prevailing party gets costs, and reasonable attorney’s fees shall be awarded to a prevailing debtor — while a prevailing creditor gets fees only on a finding that your prosecution or defence was not in good faith. That asymmetry is the point.

Two defences to know about before you rely on any of this. A collector has no civil liability if, within 15 days of discovering a curable violation or receiving written notice of it, it tells you and makes the corrections needed to cure it (Civ. § 1788.30(d)). And none if it shows by a preponderance that the violation was not intentional and happened despite procedures reasonably adapted to avoid it (Civ. § 1788.30(e)). Actions are individual only and must be brought within one year from the date of the occurrence of the violation (Civ. § 1788.30(a), (f)).

Under the Fair Debt Buying Practices Act (Civ. § 1788.62): actual damages — expressly including the amount of any judgment the debt buyer obtained through a time-barred suit — plus statutory damages of $100 to $1,000. Class actions are available here, with up to the lesser of $500,000 or 1% of the debt buyer’s net worth for a pattern and practice. On success the court shall award costs and reasonable attorney’s fees. The clock is one year from the date of the last violation — note that is not quite Rosenthal’s wording.

Do not double-collect. Civ. § 1788.62(g): recovery under Rosenthal or the federal FDCPA precludes recovery for the same acts under the debt-buying title. Choose the theory deliberately.

And it cannot be signed away. Any waiver of either title is contrary to public policy, and void and unenforceable (Civ. § 1788.33; Civ. § 1788.64). Rosenthal’s remedies are cumulative and in addition to any other rights you have (Civ. § 1788.32).

Where this sits in the California picture

This is the conduct layer over collections; the amounts themselves are governed by Davis-Stirling — the 10%-or-$10 late charge and 12% interest ceiling at Civ. § 5650(b), the pre-lien notice at Civ. § 5660, and the $1,800 foreclosure floor at Civ. § 5720. The Nonprofit Mutual Benefit Corporation Law governs the board that voted to send the account out, and fair housing law applies if collection is being pursued selectively. The California HOA laws hub carries the full set.

Advertisement
Full text
Reproduced from California Legislative Information, the official source published by the Legislative Counsel of California. Reflects amendments through the 2026 session, including SB 1286 (2024), which rewrote the Act around “covered debt” and extended it to small-business debt from 1 July 2025. Provided for reference and convenience; always confirm the current text against the official source.
Contents · 32 sections ▾

Rosenthal Act · Title 1.6C — Fair Debt Collection Practices

Article 1 — General Provisions

Civ. § 1788

This title may be cited as the Rosenthal Fair Debt Collection Practices Act.

Civ. § 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 and small businesses.

(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 small business debts and to require debtors to act fairly in entering into and honoring those debts, as specified in this title.

(c) Nothing in this title is intended to create or impose an additional licensing requirement under Division 25 (commencing with Section 100000) of the Financial Code on a debt collector with respect to the collection of covered commercial debt or covered commercial credit.

(d) The provisions of this title related to covered commercial credit or covered commercial debt apply to covered commercial credit or covered commercial debt entered into, renewed, sold, or assigned on or after July 1, 2025.

Civ. § 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 covered debts.

(c) The term “debt collector” means any person who, in the ordinary course of business, regularly, on behalf of that person 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.

(d) The term “debt” means money, property, or their equivalent that is due or owing or alleged to be due or owing from a natural person to another person.

(e) The term “consumer credit transaction” means a transaction between a natural person and another person in which property, services, or money is acquired on credit by that natural person from the other person primarily for personal, family, or household purposes.

(f) The terms “consumer debt” and “consumer credit” mean money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction. The term “consumer debt” includes a mortgage debt.

(g) The term “person” means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity.

(h) (1) Except as provided in Section 1788.18, the term “debtor” means a natural person from whom a debt collector seeks to collect a covered debt that is due and owing or alleged to be due and owing from that person.

(2) In relation to a covered commercial debt or covered commercial credit, a “debtor” shall mean a natural person who guarantees an obligation related to a covered commercial credit transaction.

(i) The term “creditor” means a person who extends covered credit to a debtor.

(j) The term “consumer credit report” means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for (1) credit or insurance to be used primarily for personal, family, or household purposes, or (2) employment purposes, or (3) other purposes authorized under any applicable federal or state law or regulation. The term does not include (a) any report containing information solely as to transactions or experiences between the consumer and the person making the report; (b) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or (c) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys that person’s decision with respect to that request, if the third party advises the consumer of the name and address of the person to whom the request was made, and the person makes the disclosures to the consumer required under any applicable federal or state law or regulation.

(k) The term “consumer reporting agency” means any person that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer credit reports to third parties and uses any means or facility for the purpose of preparing or furnishing consumer credit reports.

(l) The term “covered debt” means a consumer debt or a covered commercial debt.

(m) The term “covered credit” means consumer credit or covered commercial credit.

(n) (1) The terms “covered commercial debt” and “covered commercial credit” mean money due or owing or alleged to be due or owing from a natural person to a lender, a commercial financing provider, as defined in Section 22800 of the Financial Code, or a debt buyer, as defined in Section 1788.50, by reason of one or more covered commercial credit transactions, provided the total amount of all covered commercial credit transactions and all other noncovered commercial credit transactions due and owing by the debtor or other person obligated under the transactions to the same lender, commercial financing provider, or debt buyer is no more than five hundred thousand dollars ($500,000).

(A) For credit owed to a lender or commercial financing provider, the total value of credit per transaction is determined as of when the transaction is first entered into and is the maximum amount that the creditor is contractually required to provide or make available to the debtor over the life of the transaction or is the maximum amount that is enumerated in an open-end credit agreement.

(B) The value of credit for each transaction for a debt buyer is the amount owing or alleged to be owing to the debt buyer when the debt buyer acquires the rights of the lender or commercial financing provider in the commercial credit.

(2) Notwithstanding any other provision of this section, covered commercial debt does not include either of the following:

(A) Trade credit.

(B) A commercial financing transaction in which the recipient is a dealer as defined by Section 285 of the Vehicle Code, or an affiliate of the dealer, pursuant to a specific commercial financing offer or commercial open-end credit plan of at least fifty thousand dollars ($50,000), including, but not limited to, a commercial loan made pursuant to that commercial financing transaction.

(o) The term “covered commercial credit transaction” means a transaction between a person and another person in which a total value of no more than five hundred thousand dollars ($500,000), is acquired on credit by that person from the other person for use primarily for other than personal, family, or household purposes.

(p) The term “trade credit” means an extension of credit that meets both of the following conditions:

(1) The credit is extended by a person whose primary business is the furnishing or provision of goods, materials, equipment, or services.

(2) The credit is extended in connection with the furnishing or provision of goods, materials, equipment, or services, unless the transaction is structured as “lease financing” as defined in Section 22800 of the Financial Code.

Civ. § 1788.3

Nothing contained in this title shall be construed to prohibit a credit union chartered under Division 5 (commencing with Section 14000) of the Financial Code or under the Federal Credit Union Act (Chapter 14 (commencing with Section 1751) of Title 12 of the United States Code) from providing information to an employer when the employer is ordinarily and necessarily entitled to receive such information because he is an employee, officer, committee member, or agent of such credit union.

Article 2 — Debt Collector Responsibilities

Civ. § 1788.10

No debt collector shall collect or attempt to collect a covered debt by means of the following conduct:

(a) The use, or threat of use, of physical force or violence or any criminal means to cause harm to the person, or the reputation, or the property of any person.

(b) The threat that the failure to pay a covered debt will result in an accusation that the debtor has committed a crime where the accusation, if made, would be false.

(c) The communication of, or threat to communicate to any person the fact that a debtor has engaged in conduct, other than the failure to pay a covered debt, which the debt collector knows or has reason to believe will defame the debtor.

(d) The threat to the debtor to sell or assign to another person the obligation of the debtor to pay a covered debt, with an accompanying false representation that the result of the sale or assignment would be that the debtor would lose any defense to the covered debt.

(e) The threat to any person that nonpayment of the covered debt may result in the arrest of the debtor or the seizure, garnishment, attachment, or sale of any property or the garnishment or attachment of wages of the debtor, unless the action is in fact contemplated by the debt collector and permitted by the law.

(f) The threat to take any action against the debtor, which is prohibited by this title.

Civ. § 1788.11

No debt collector shall collect or attempt to collect a covered debt by means of the following practices:

(a) Using obscene or profane language.

(b) Placing a telephone call without disclosing the caller’s identity, provided that an employee of a licensed collection agency may identify oneself by using their registered alias name if they correctly identify the agency that they represent. A debt collector shall provide its California debt collector license number, if applicable, upon the consumer’s request.

(c) Causing expense to any person for long distance telephone calls, telegram fees, or charges for other similar communications, by misrepresenting to the person the purpose of the telephone call, telegram or similar communication.

(d) Causing a telephone to ring repeatedly or continuously to annoy the person called.

(e) Communicating, by telephone or in person, with the debtor with such frequency as to be unreasonable, and to constitute harassment of the debtor under the circumstances.

(f) Sending written or digital communication to the person that does not display the California license number of the collector, if applicable, in at least 12-point type.

Civ. § 1788.12

No debt collector shall collect or attempt to collect a covered debt or consumer debt, as specified, by means of the following practices:

(a) Communicating with the debtor’s employer regarding the debtor’s consumer debt unless such a communication is necessary to the collection of the consumer debt, or unless the debtor or their attorney has consented in writing to that communication. A communication is necessary to the collection of the consumer debt only if it is made for the purposes of verifying the debtor’s employment, locating the debtor, or effecting garnishment, after judgment, of the debtor’s wages, or in the case of a medical debt for the purpose of discovering the existence of medical insurance. Any such communication, other than a communication in the case of a medical debt by a health care provider or its agent for the purpose of discovering the existence of medical insurance, shall be in writing unless that written communication receives no response within 15 days and shall be made only as many times as is necessary to the collection of the consumer debt. Communications to a debtor’s employer regarding a consumer debt shall not contain language that would be improper if the communication were made to the debtor. One communication solely for the purpose of verifying the debtor’s employment may be oral without prior written contact.

(b) Communicating information regarding a consumer debt to any member of the debtor’s family, other than the debtor’s spouse or the parents or guardians of the debtor who is either a minor or who resides in the same household with that parent or guardian, prior to obtaining a judgment against the debtor, except where the purpose of the communication is to locate the debtor, or where the debtor or their attorney has consented in writing to that communication.

(c) Communicating to any person any list of debtors that discloses the nature or existence of a covered debt, commonly known as “deadbeat lists,” or advertising any covered debt for sale, by naming the debtor.

(d) Communicating with the debtor by means of a written communication that displays or conveys any information about the covered debt or the debtor other than the name, address, and telephone number of the debtor and the debt collector and that is intended both to be seen by any other person and also to embarrass the debtor.

(e) Notwithstanding the foregoing provisions of this section, the disclosure, publication, or communication by a debt collector of information relating to a covered debt or the debtor to a consumer reporting agency or to any other person reasonably believed to have a legitimate business need for that information shall not be deemed to violate this title.

Civ. § 1788.13

No debt collector shall collect or attempt to collect a covered debt by means of the following practices:

(a) Any communication with the debtor other than in the name either of the debt collector or the person on whose behalf the debt collector is acting.

(b) Any false representation that any person is an attorney or counselor at law.

(c) Any communication with a debtor in the name of an attorney or counselor at law or upon stationery or like written instruments bearing the name of the attorney or counselor at law, unless that communication is by an attorney or counselor at law or shall have been approved or authorized by that attorney or counselor at law.

(d) The representation that any debt collector is vouched for, bonded by, affiliated with, or is an instrumentality, agent or official of any federal, state or local government or any agency of federal, state or local government, unless the collector is actually employed by the particular governmental agency in question and is acting on behalf of that agency in the debt collection matter.

(e) The false representation that the covered debt may be increased by the addition of attorney’s fees, investigation fees, service fees, finance charges, or other charges if, in fact, those fees or charges may not legally be added to the existing obligation.

(f) The false representation that information concerning a debtor’s failure or alleged failure to pay a covered debt has been or is about to be referred to a consumer reporting agency.

(g) The false representation that a debt collector is a consumer reporting agency.

(h) The false representation that collection letters, notices or other printed forms are being sent by or on behalf of a claim, credit, audit, or legal department.

(i) The false representation of the true nature of the business or services being rendered by the debt collector.

(j) The false representation that a legal proceeding has been, is about to be, or will be instituted unless payment of a covered debt is made.

(k) The false representation that a covered debt has been, is about to be, or will be sold, assigned, or referred to a debt collector for collection.

(l) Any communication by a collection agency to a debtor demanding money unless the claim is actually assigned to the collection agency.

Civ. § 1788.14

No debt collector shall collect or attempt to collect a covered debt by means of the following practices:

(a) Obtaining an affirmation from a debtor of a covered debt that has been discharged in bankruptcy, without clearly and conspicuously disclosing to the debtor, in writing, at the time the affirmation is sought, the fact that the debtor is not legally obligated to make an affirmation.

(b) Collecting or attempting to collect from the debtor the whole or any part of the debt collector’s fee or charge for services rendered, or other expense incurred by the debt collector in the collection of the covered debt, except as permitted by law.

(c) Initiating communications, other than statements of account, with the debtor with regard to the covered debt, when the debt collector has been previously notified in writing by the debtor’s attorney that the debtor is represented by the attorney with respect to the covered debt and the notice includes the attorney’s name and address and a request by the attorney that all communications regarding the covered debt be addressed to the attorney, unless the attorney fails to answer correspondence, return telephone calls, or discuss the obligation in question. This subdivision shall not apply if prior approval has been obtained from the debtor’s attorney, or if the communication is a response in the ordinary course of business to a debtor’s inquiry.

(d) Sending a written communication to a debtor in an attempt to collect a time-barred debt without providing the debtor with one of the following written notices:

(1) If the debt is not past the date for obsolescence set forth in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c), the following notice shall be included in the first written communication provided to the debtor after the debt has become time-barred:

“The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it. If you do not pay the debt, [insert name of debt collector] may [continue to] report it to the credit reporting agencies as unpaid for as long as the law permits this reporting.”

(2) If the debt is past the date for obsolescence set forth in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c), the following notice shall be included in the first written communication provided to the debtor after the date for obsolescence:

“The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, and we will not report it to any credit reporting agency.”

(e) Collecting consumer debt that originated with a hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code without including in the first written communication to the debtor a copy of the notice required pursuant to subdivision (e) of Section 127425 of the Health and Safety Code and a statement that the debt collector will wait at least 180 days from the date the debtor was initially billed for the hospital services that are the basis of the debt before filing a lawsuit against the debtor.

(f) For purposes of this section, “first written communication” means the first communication sent to the debtor in writing or by facsimile, email, or other similar means.

Civ. § 1788.14.5

(a) A debt collector to which delinquent debt has been assigned shall provide to the debtor, upon the debtor’s written request, a statement that includes all of the following information pursuant to subdivision (c):

(1) That the debt collector has authority to assert the rights of the creditor to collect the debt.

(2) (A) The debt balance and an explanation of the amount, nature, and reason for all interest and fees, if any, imposed by the creditor or any subsequent entities to which the debt was assigned.

(B) The explanation required by subparagraph (A) shall identify separately the balance, the total of any interest, and the total of any fees.

(3) The date the debt became delinquent or the date of the last payment.

(4) The name and an address of the creditor and the creditor’s account number associated with the debt. The creditor’s name and address shall be in sufficient form so as to reasonably identify the creditor.

(5) The name and last known address of the debtor as they appeared in the creditor’s records before the assignment of the debt to the debt collector.

(6) The names and addresses of all persons or entities other than the debt collector to which the debt was assigned. The names and addresses shall be in sufficient form so as to reasonably identify each assignee.

(7) The California license number of the debt collector, if applicable.

(b) A debt collector to which delinquent debt has been assigned shall not make a written statement to a debtor in an attempt to collect a delinquent debt unless the debt collector has access to a copy of a contract or other document evidencing the debtor’s agreement to the debt, except in the following circumstances:

(1) If the claim is based on debt for which no signed contract or agreement exists, the debt collector shall have access to a copy of a document provided to the debtor while the account was active, demonstrating that the debt was incurred by the debtor.

(2) For a revolving credit account, the most recent monthly statement recording a purchase transaction, last payment, or balance transfer shall be deemed sufficient to satisfy the requirements of this subparagraph.

(c) (1) A debt collector to which delinquent debt has been assigned shall provide the information or documents identified in subdivisions (a) and (b) to the debtor without charge within 30 calendar days of receipt of a debtor’s written request for information regarding the debt or proof of the debt.

(2) If the debt collector cannot provide the information or documents within 30 calendar days, the debt collector shall cease all collection of the debt until the debt collector provides the debtor the information or documents described in subdivisions (a) and (b).

(d) (1) A debt collector shall provide a debtor with whom it has contact an active postal address to which a debtor may send a request for the information described in this section.

(2) A debt collector may also provide an active email address to which these requests can be sent and through which information and documents can be delivered if the parties agree.

(e) (1) A debt collector to which delinquent debt has been assigned shall include in its first written communication with the debtor in no smaller than 12-point type, a separate prominent notice that contains the following statement:

“You may request records showing the following: (1) that [insert name of debt collector] has the right to seek collection of the debt; (2) the debt balance, including an explanation of any interest charges and additional fees; (3) the date the debt became delinquent or the date of the last payment; (4) the name of the creditor and the account number associated with the debt; (5) the name and last known address of the debtor as it appeared in the creditor’s records prior to assignment of the debt; and (6) the names of all persons or entities other than the debt collector to which the debt has been assigned, if applicable. You may also request from us a copy of the contract or other document evidencing your agreement to the debt.

A request for these records may be addressed to: [insert debt collector’s active mailing address and email address, if applicable].”

(2) If a language other than English is principally used by the debt collector in the initial oral contact with the debtor, the notice required by this subdivision shall be provided to the debtor in that language within five business days.

(f) (1) A debt buyer that complies with the requirements of Section 1788.52 shall be deemed to be in compliance with this section.

(2) For purposes of this subdivision, “debt buyer” shall have the same meaning as in Section 1788.50.

(g) For the purposes of this section, the term “delinquent debt” means a covered debt, other than a mortgage debt, that is past due at least 90 days and has not been charged off.

(h) This section shall apply to all delinquent consumer debt sold or assigned on or after July 1, 2022.

(i) This section shall apply to all delinquent covered commercial debt sold or assigned on or after July 1, 2025.

Civ. § 1788.15

(a) No debt collector shall collect or attempt to collect a covered debt by means of judicial proceedings when the debt collector knows that service of process, where essential to jurisdiction over the debtor or their property, has not been legally effected.

(b) No debt collector shall collect or attempt to collect a covered debt, other than one reduced to judgment, by means of judicial proceedings in a county other than the county in which the debtor has incurred the covered debt or the county in which the debtor resides at the time those proceedings are instituted, or resided at the time the debt was incurred.

(c) Notwithstanding subdivision (b), when the obligation of the debtor arises from a guaranty by the debtor of a covered commercial debt, a debt collector may collect or attempt to collect covered commercial debt by means of a judicial proceeding in the county in which the nonnatural person for whose purpose the commercial debt was incurred is located.

(d) This section shall apply to all delinquent covered commercial debt sold or assigned on or after July 1, 2025.

Civ. § 1788.16

It is unlawful, with respect to attempted collection of a covered debt, for a debt collector, creditor, or an attorney to send a communication that simulates legal or judicial process or that gives the appearance of being authorized, issued, or approved by a governmental agency or attorney when it is not. Any violation of the provisions of this section is a misdemeanor punishable by imprisonment in the county jail not exceeding six months, or by a fine not exceeding two thousand five hundred dollars ($2,500) or by both.

Civ. § 1788.17

Notwithstanding any other provision of this title, every debt collector collecting or attempting to collect a consumer debt shall comply with the provisions of Sections 1692b to 1692j, inclusive, of, and shall be subject to the remedies in Section 1692k of, Title 15 of the United States Code. However, subsection (11) of Section 1692e and Section 1692g shall not apply to any person specified in paragraphs (A) and (B) of subsection (6) of Section 1692a of Title 15 of the United States Code or that person’s principal. The references to federal codes in this section refer to those codes as they read January 1, 2001.

Civ. § 1788.18

(a) Upon receipt from a debtor of all of the following, a debt collector shall cease collection activities until completion of the review provided in subdivision (d):

(1) A copy of a Federal Trade Commission (FTC) identity theft report, completed and signed by the debtor. The debtor may choose, instead, to send a copy of a police report filed by the debtor alleging that the debtor is the victim of an identity theft crime, including, but not limited to, a violation of Section 530.5 of the Penal Code, for the specific debt being collected by the debt collector; however, the debt collector shall not also require a police report if the debtor submits an FTC identity theft report.

(2) The debtor’s written statement that the debtor claims to be the victim of identity theft with respect to the specific debt being collected by the debt collector.

(b) The written statement described in paragraph (2) of subdivision (a) shall consist of either of the following:

(1) A written statement that contains the content of the Identity Theft Victim’s Fraudulent Account Information Request offered to the public by the California Office of Privacy Protection.

(2) A written statement that certifies that the representations are true, correct, and contain no material omissions of fact to the best knowledge and belief of the person submitting the certification. A person submitting the certification who declares as true any material matter pursuant to this subdivision that they know to be false is guilty of a misdemeanor. The statement shall contain or be accompanied by the following, to the extent that an item listed below is relevant to the debtor’s allegation of identity theft with respect to the debt in question:

(A) A statement that the debtor is a victim of identity theft.

(B) A copy of the debtor’s driver’s license or identification card, as issued by the state.

(C) Any other identification document that supports the statement of identity theft.

(D) Specific facts supporting the claim of identity theft, if available.

(E) Any explanation showing that the debtor did not incur the debt.

(F) Any available correspondence disputing the debt after transaction information has been provided to the debtor.

(G) Documentation of the residence of the debtor at the time of the alleged debt. This may include copies of bills and statements, such as utility bills, tax statements, or other statements from businesses sent to the debtor, showing that the debtor lived at another residence at the time the debt was incurred.

(H) A telephone number for contacting the debtor concerning any additional information or questions, or direction that further communications to the debtor be in writing only, with the mailing address specified in the statement.

(I) To the extent the debtor has information concerning who may have incurred the debt, the identification of any person whom the debtor believes is responsible.

(J) An express statement that the debtor did not authorize the use of the debtor’s name or personal information for incurring the debt.

(K) The certification required pursuant to this paragraph shall be sufficient if it is in substantially the following form:

“I certify the representations made are true, correct, andcontain no material omissions of fact.

_____ (Date and Place) _____ _____ (Signature) _____ ”

(c) If a debtor notifies a debt collector orally that they are a victim of identity theft, the debt collector shall notify the debtor, orally or in writing, that the debtor’s claim must be in writing. If a debtor notifies a debt collector in writing that they are a victim of identity theft, but omits information required pursuant to subdivision (a) or, if applicable, the certification required pursuant to paragraph (2) of subdivision (b), if the debt collector does not cease collection activities, the debt collector shall provide written notice to the debtor of the additional information that is required, or the certification required pursuant to paragraph (2) of subdivision (b), as applicable, or send the debtor a copy of the Federal Trade Commission’s identity theft form.

(d) Within 10 business days of receiving the complete statement and information described in subdivision (a), the debt collector shall, if it furnished adverse information about the debtor to a consumer credit reporting agency, notify the consumer credit reporting agency that the account is disputed, and initiate a review considering all of the information provided by the debtor and other information available to the debt collector in its file or from the creditor. The debt collector shall send notice of its determination to the debtor no later than 10 business days after concluding the review. The debt collector may recommence debt collection activities only upon making a good faith determination that the information does not establish that the debtor is not responsible for the specific debt in question. The debt collector’s determination shall be made in a manner consistent with the provisions of subsection (1) of Section 1692f of Title 15 of the United States Code, as incorporated by Section 1788.17 of this code. The debt collector shall notify the debtor in writing of that determination and the basis for that determination before proceeding with any further collection activities. The debt collector’s determination shall be based on all of the information provided by the debtor and other information available to the debt collector in its file or from the creditor.

(e) No inference or presumption that the debt is valid or invalid, or that the debtor is liable or not liable for the debt, shall arise if the debt collector decides after the review described in subdivision (d) to cease or recommence the debt collection activities. The exercise or nonexercise of rights under this section is not a waiver of any other right or defense of the debtor or debt collector.

(f) The statement and supporting documents that comply with subdivision (a) may also satisfy, to the extent those documents meet the requirements of, the notice requirement of paragraph (5) of subdivision (c) of Section 1798.93.

(g) A debt collector who ceases collection activities under this section and does not recommence those collection activities shall do both of the following:

(1) If the debt collector has furnished adverse information to a consumer credit reporting agency, notify the agency to delete that information no later than 10 business days after making its determination.

(2) Notify the creditor no later than 10 business days after making its determination that debt collection activities have been terminated based upon the debtor’s claim of identity theft.

(h) A debt collector who has possession of documents that the debtor is entitled to request from a creditor pursuant to Section 530.8 of the Penal Code is authorized to provide those documents to the debtor.

(i) Notwithstanding subdivision (h) of Section 1788.2, for the purposes of this section, “debtor” means a natural person, firm, association, organization, partnership, business trust, company, corporation, or limited liability company from which a debt collector seeks to collect a debt that is due and owing or alleged to be due and owing from the person or entity. The remedies provided by this title shall apply equally to violations of this section.

Civ. § 1788.185

(a) The complaint in an action brought by a debt collector for debt that originated with a general acute care hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code shall allege all of the following:

(1) That the plaintiff is a debt collector.

(2) That the underlying debt originated with a general acute care hospital.

(3) The information contained in paragraph (6) of subdivision (e) of Section 127425 of the Health and Safety Code and a statement identifying the language in which that information was sent to the debtor.

(4) The balance of the debt upon assignment to the debt collector and an explanation of the amount, nature, and reason for any interest and fees that are added to the debt balance by the debt collector after the assignment of the debt. This paragraph shall not be deemed to require a specific itemization, but the explanation shall identify separately the charge-off balance of the debt upon assignment to the debt collector, the total of any interest, and the total of any fees added to the debt balance by the debt collector after the assignment of the debt.

(5) The date of default or the date of the last payment, and the date the debt was assigned.

(6) The name and address of the hospital at the time of assignment.

(7) The hospital’s account number associated with the debt.

(b) Copies of the application for financial assistance that was provided to the debtor by the hospital and the notice that was provided to the debtor by the hospital about applying for financial assistance shall be attached to the complaint. If the notice was provided as part of the hospital bill that cannot be separated, the bill shall be redacted to remove confidential information or a sample hospital bill with the substance of the notice regarding financial assistance in the format in use at the time the patient was billed may be provided.

(c) This title does not require the disclosure in public records of personal, financial, or medical information, the confidentiality of which is protected by state or federal law. The plaintiff shall redact protected information filed with the complaint.

(d) A default or other judgment shall not be entered against a debtor for debt pursuant to this section unless business records, authenticated through a sworn declaration, are submitted by the debt collector to the court to establish the facts required to be alleged pursuant to subdivision (a).

(e) If a debt collector plaintiff seeks a default judgment and has not complied with this title, the court shall not enter a default judgment for the plaintiff and may, in its discretion, dismiss the action.

(f) Except as provided in this title, this section does not modify or otherwise amend the procedures established in Section 585 of the Code of Civil Procedure.

Article 3 — Debtor Responsibilities

Civ. § 1788.20

In connection with any request or application for covered credit, no person shall:

(a) Request or apply for that credit at a time when that person knows there is no reasonable probability of that person’s being able, or that person then lacks the intention, to pay the obligation created thereby in accordance with the terms and conditions of the credit extension.

(b) Knowingly submit false or inaccurate information or willfully conceal adverse information bearing upon that person’s credit worthiness, credit standing, or credit capacity.

Civ. § 1788.21

(a) In connection with any covered credit existing or requested to be extended to a person, that person shall within a reasonable time notify the creditor or prospective creditor of any change in that person’s name, address, or employment.

(b) Each responsibility set forth in subdivision (a) shall apply only if and after the creditor clearly and conspicuously in writing discloses that responsibility to that person.

Civ. § 1788.22

(a) In connection with any covered credit extended to a person under an account:

(1) No such person shall attempt to consummate any covered credit transaction thereunder knowing that credit privileges under the account have been terminated or suspended.

(2) Each such person shall notify the creditor by telephone, telegraph, letter, or any other reasonable means that an unauthorized use of the account has occurred or may occur as the result of loss or theft of a credit card, or other instrument identifying the account, within a reasonable time after that person’s discovery thereof, and shall reasonably assist the creditor in determining the facts and circumstances relating to any unauthorized use of the account.

(b) Each responsibility set forth in subdivision (a) shall apply only if and after the creditor clearly and conspicuously in writing discloses that responsibility to that person.

Article 4 — Enforcement

Civ. § 1788.30

(a) Any debt collector who violates this title with respect to any debtor shall be liable to that debtor only in an individual action, and his liability therein to that debtor shall be in an amount equal to the sum of any actual damages sustained by the debtor as a result of the violation.

(b) Any debt collector who willfully and knowingly violates this title with respect to any debtor shall, in addition to actual damages sustained by the debtor as a result of the violation, also be liable to the debtor only in an individual action, and his additional liability therein to that debtor shall be for a penalty in such amount as the court may allow, which shall not be less than one hundred dollars ($100) nor greater than one thousand dollars ($1,000).

(c) In the case of any action to enforce any liability under this title, the prevailing party shall be entitled to costs of the action. Reasonable attorney’s fees, which shall be based on time necessarily expended to enforce the liability, shall be awarded to a prevailing debtor; reasonable attorney’s fees may be awarded to a prevailing creditor upon a finding by the court that the debtor’s prosecution or defense of the action was not in good faith.

(d) A debt collector shall have no civil liability under this title if, within 15 days either after discovering a violation which is able to be cured, or after the receipt of a written notice of such violation, the debt collector notifies the debtor of the violation, and makes whatever adjustments or corrections are necessary to cure the violation with respect to the debtor.

(e) A debt collector shall have no civil liability to which such debt collector might otherwise be subject for a violation of this title, if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted notwithstanding the maintenance of procedures reasonably adapted to avoid any such violation.

(f) Any action under this section may be brought in any appropriate court of competent jurisdiction in an individual capacity only, within one year from the date of the occurrence of the violation.

(g) Any intentional violation of the provisions of this title by the debtor may be raised as a defense by the debt collector, if such violation is pertinent or relevant to any claim or action brought against the debt collector by or on behalf of the debtor.

Civ. § 1788.31

If any provision of this title, or the application thereof to any person or circumstances, is held invalid, the remaining provisions of this title, or the application of such provisions to other persons or circumstances, shall not be affected thereby.

Civ. § 1788.32

The remedies provided herein are intended to be cumulative and are in addition to any other procedures, rights, or remedies under any other provision of law. The enactment of this title shall not supersede existing administrative regulations of the Director of Consumer Affairs except to the extent that those regulations are inconsistent with the provisions of this title.

Civ. § 1788.33

Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable.

Fair Debt Buying Practices Act · Title 1.6C.5 (§§ 1788.50–1788.66 — whoever bought the debt)

Civ. § 1788.50

(a) As used in this title:

(1) “Debt buyer” means a person or entity that is regularly engaged in the business of purchasing charged-off consumer debt for collection purposes, whether it collects the debt itself, hires a third party for collection, or hires an attorney-at-law for collection litigation. “Debt buyer” does not mean a person or entity that acquires a charged-off consumer debt incidental to the purchase of a portfolio predominantly consisting of consumer debt that has not been charged off.

(2) “Charged-off consumer debt” means a consumer debt that has been removed from a creditor’s books as an asset and treated as a loss or expense.

(b) The acquisition by a check services company of the right to collect on a paper or electronic check instrument, including an Automated Clearing House item, that has been returned unpaid to a merchant does not constitute a purchase of delinquent consumer debt under this title.

(c) Terms defined in Title 1.6C (commencing with Section 1788) shall apply to this title.

(d) This title shall apply to debt buyers with respect to all consumer debt sold or resold on or after January 1, 2014.

Civ. § 1788.52

(a) A debt buyer shall not make any written statement to a debtor in an attempt to collect a consumer debt unless the debt buyer possesses the following information:

(1) That the debt buyer is the sole owner of the debt at issue or has authority to assert the rights of all owners of the debt.

(2) The debt balance at charge off and an explanation of the amount, nature, and reason for all post-charge-off interest and fees, if any, imposed by the charge-off creditor or any subsequent purchasers of the debt. This paragraph shall not be deemed to require a specific itemization, but the explanation shall identify separately the charge-off balance, the total of any post-charge-off interest, and the total of any post-charge-off fees.

(3) The date of default or the date of the last payment.

(4) The name and an address of the charge-off creditor at the time of charge off, and the charge-off creditor’s account number associated with the debt. The charge-off creditor’s name and address shall be in sufficient form so as to reasonably identify the charge-off creditor.

(5) The name and last known address of the debtor as they appeared in the charge-off creditor’s records prior to the sale of the debt. If the debt was sold prior to January 1, 2014, the name and last known address of the debtor as they appeared in the debt owner’s records on December 31, 2013, shall be sufficient.

(6) The names and addresses of all persons or entities that purchased the debt after charge off, including the debt buyer making the written statement. The names and addresses shall be in sufficient form so as to reasonably identify each such purchaser.

(7) The California license number of the debt buyer.

(b) A debt buyer shall not make any written statement to a debtor in an attempt to collect a consumer debt unless the debt buyer has access to a copy of a contract or other document evidencing the debtor’s agreement to the debt. If the claim is based on debt for which no signed contract or agreement exists, the debt buyer shall have access to a copy of a document provided to the debtor while the account was active, demonstrating that the debt was incurred by the debtor. For a revolving credit account, the most recent monthly statement recording a purchase transaction, last payment, or balance transfer shall be deemed sufficient to satisfy this requirement.

(c) A debt buyer shall provide the information or documents identified in subdivisions (a) and (b) to the debtor without charge within 15 calendar days of receipt of a debtor’s written request for information regarding the debt or proof of the debt. If the debt buyer cannot provide the information or documents within 15 calendar days, the debt buyer shall cease all collection of the debt until the debt buyer provides the debtor the information or documents described in subdivisions (a) and (b). Except as provided otherwise in this title, the request by the debtor shall be consistent with the validation requirements contained in Section 1692g of Title 15 of the United States Code. A debt buyer shall provide all debtors with whom it has contact an active postal address to which these requests can be sent. A debt buyer may also provide an active email address to which these requests can be sent and through which information and documents can be delivered, if the parties agree.

(d) (1) A debt buyer shall include with its first written communication with the debtor in no smaller than 12-point type, a separate prominent notice that provides:

“You may request records showing the following: (1) that [insert name of debt buyer] has the right to seek collection of the debt; (2) the debt balance, including an explanation of any interest charges and additional fees; (3) the date of default or the date of the last payment; (4) the name of the charge-off creditor and the account number associated with the debt; (5) the name and last known address of the debtor as it appeared in the charge-off creditor’s or debt buyer’s records prior to the sale of the debt, as appropriate; and (6) the names of all persons or entities that have purchased the debt. You may also request from us a copy of the contract or other document evidencing your agreement to the debt.

“A request for these records may be addressed to: [insert debt buyer’s active mailing address and email address, if applicable].”

(2) When collecting on a time-barred debt where the debt is not past the date for obsolescence provided for in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c):

“The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it. If you do not pay the debt, [insert name of debt buyer] may [continue to] report it to the credit reporting agencies as unpaid for as long as the law permits this reporting.”

(3) When collecting on a time-barred debt where the debt is past the date for obsolescence provided for in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c):

“The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, and we will not report it to any credit reporting agency.”

(e) If a language other than English is principally used by the debt buyer in the initial oral contact with the debtor, the notice required by subdivision (d) shall be provided to the debtor in that language within five working days.

(f) A debt buyer shall not collect, or make any attempt to collect consumer debt that originated with a hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code without including in the first written communication to the debtor a copy of the notice required pursuant to subdivision (e) of Section 127425 of the Health and Safety Code.

(g) In the event of a conflict between the requirements of subdivision (d) and federal law, so that it is impracticable to comply with both, the requirements of federal law shall prevail.

Civ. § 1788.54

(a) All settlement agreements between a debt buyer and a debtor shall be documented in open court or otherwise reduced to writing. The debt buyer shall ensure that a copy of the written agreement is provided to the debtor.

(b) A debt buyer that receives payment on a debt shall provide, within 30 calendar days, a receipt or monthly statement, to the debtor. The receipt or statement shall clearly and conspicuously show the amount and date paid, the name of the entity paid, the current account number, the name of the charge-off creditor, the account number issued by the charge-off creditor, and the remaining balance owing, if any. The receipt or statement may be provided electronically if the parties agree.

(c) A debt buyer that accepts a payment as payment in full, or as a full and final compromise of the debt, shall provide, within 30 calendar days, a final statement that complies with subdivision (b). A debt buyer shall not sell an interest in a resolved debt, or any personal or financial information related to the resolved debt.

Civ. § 1788.56

A debt buyer shall not bring suit or initiate an arbitration or other legal proceeding to collect a consumer debt if the applicable statute of limitations on the debt buyer’s claim has expired.

Civ. § 1788.58

In an action brought by a debt buyer on a consumer debt:

(a) The complaint shall allege all of the following:

(1) That the plaintiff is a debt buyer.

(2) The nature of the underlying debt and the consumer transaction or transactions from which it is derived, in a short and plain statement.

(3) That the debt buyer is the sole owner of the debt at issue, or has authority to assert the rights of all owners of the debt.

(4) The debt balance at charge off and an explanation of the amount, nature, and reason for all post-charge-off interest and fees, if any, imposed by the charge-off creditor or any subsequent purchasers of the debt. This paragraph shall not be deemed to require a specific itemization, but the explanation shall identify separately the charge-off balance, the total of any post-charge-off interest, and the total of any post-charge-off fees.

(5) The date of default or the date of the last payment.

(6) The name and an address of the charge-off creditor at the time of charge off and the charge-off creditor’s account number associated with the debt. The charge-off creditor’s name and address shall be in sufficient form so as to reasonably identify the charge-off creditor.

(7) The name and last known address of the debtor as they appeared in the charge-off creditor’s records prior to the sale of the debt. If the debt was sold prior to January 1, 2014, the debtor’s name and last known address as they appeared in the debt owner’s records on December 31, 2013, shall be sufficient.

(8) The names and addresses of all persons or entities that purchased the debt after charge off, including the plaintiff debt buyer. The names and addresses shall be in sufficient form so as to reasonably identify each such purchaser.

(9) That the debt buyer has complied with Section 1788.52.

(b) A copy of the contract or other document described in subdivision (b) of Section 1788.52 shall be attached to the complaint.

(c) The complaint in an action brought by a debt buyer for debt that originated with a general acute care hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code shall also contain both of the following:

(1) The information contained in paragraph (6) of subdivision (e) of Section 127425 of the Health and Safety Code and a statement identifying the language in which that information was sent to the debtor.

(2) Copies of the application for financial assistance that was provided to the debtor by the hospital and the notice that was provided to the debtor by the hospital about applying for financial assistance, attached to the complaint. If the notice was provided as part of the hospital bill that cannot be separated, the bill shall be redacted to remove confidential information, or a sample hospital bill with the substance of the notice regarding financial assistance in the format in use at the time the patient was billed may be provided.

(d) The requirements of this title shall not be deemed to require the disclosure in public records of personal, financial, or medical information, the confidentiality of which is protected by any state or federal law.

Civ. § 1788.60

(a) In an action initiated by a debt buyer, no default or other judgment may be entered against a debtor unless business records, authenticated through a sworn declaration, are submitted by the debt buyer to the court to establish the facts required to be alleged by paragraphs (3) to (8), inclusive, of subdivision (a) of Section 1788.58.

(b) No default or other judgment may be entered against a debtor unless a copy of the contract or other document described in subdivision (b) of Section 1788.52, authenticated through a sworn declaration, has been submitted by the debt buyer to the court.

(c) In any action on a consumer debt, if a debt buyer plaintiff seeks a default judgment and has not complied with the requirements of this title, the court shall not enter a default judgment for the plaintiff and may, in its discretion, dismiss the action.

(d) Except as provided in this title, this section is not intended to modify or otherwise amend the procedures established in Section 585 of the Code of Civil Procedure.

Civ. § 1788.61

(a) (1) Notwithstanding Section 473.5 of the Code of Civil Procedure, if service of a summons has not resulted in actual notice to a person in time to defend an action brought by a debt buyer and a default or default judgment has been entered against the person in the action, the person may serve and file a notice of motion and motion to set aside the default or default judgment and for leave to defend the action.

(2) Except as provided in paragraph (3), the notice of motion shall be served and filed within a reasonable time, but in no event exceeding the earlier of:

(A) Six years after entry of the default or default judgment against the person.

(B) One hundred eighty days of the first actual notice of the action.

(3) (A) Notwithstanding paragraph (2), in the case of identity theft or mistaken identity, the notice of motion shall be served and filed within a reasonable time, but in no event exceeding 180 days of the first actual notice of the action.

(B) (i) In the case of identity theft, the person alleging that they are a victim of identity theft shall provide the court with either a copy of a Federal Trade Commission identity theft report or a copy of a police report filed by the person alleging that they are the victim of an identity theft crime, including, but not limited to, a violation of Section 530.5 of the Penal Code, for the specific debt associated with the judgment.

(ii) In the case of mistaken identity, the moving party shall provide relevant information or documentation to support the claim that they are not the party named in the judgment or is not the person who incurred or owes the debt.

(b) A notice of motion to set aside a default or default judgment and for leave to defend the action shall designate as the time for making the motion a date prescribed by Section 1005 of the Code of Civil Procedure, and it shall be accompanied by an affidavit stating under oath that the person’s lack of actual notice in time to defend the action was not caused by their avoidance of service or inexcusable neglect. The person shall serve and file with the notice a copy of the answer, motion, or other pleading proposed to be filed in the action. Either party may introduce, and the court may consider, evidence in support of its motion or opposition, including evidence relating to the process server who appears on the proof of service of the summons and complaint.

(c) Upon a finding by the court that the motion was made within the period permitted by subdivision (a) and that the person’s lack of actual notice in time to defend the action was not caused by their avoidance of service or inexcusable neglect, the court may set aside the default or default judgment on whatever terms as may be just and allow the party to defend the action. If the validity of the judgment is not challenged, the court may select an appropriate remedy other than setting aside the default or default judgment.

(d) This section shall apply to a default or default judgment entered on or after January 1, 2010, except in the case of identity theft or mistaken identity, in which case this section shall apply regardless of the date of the default or default judgment.

(e) This section shall not limit the equitable authority of the court or other available remedies under law.

Civ. § 1788.62

(a) In the case of an action brought by an individual or individuals, a debt buyer that violates any provision of this title with respect to any person shall be liable to that person in an amount equal to the sum of the following:

(1) Any actual damages sustained by that person as a result of the violation, including, but not limited to, the amount of any judgment obtained by the debt buyer as a result of a time-barred suit to collect a debt from that person.

(2) Statutory damages in an amount as the court may allow, which shall not be less than one hundred dollars ($100) nor greater than one thousand dollars ($1,000).

(b) In the case of a class action, a debt buyer that violates any provision of this title shall be liable for any statutory damages for each named plaintiff as provided in paragraph (2) of subdivision (a). If the court finds that the debt buyer engaged in a pattern and practice of violating any provision of this title, the court may award additional damages to the class in an amount not to exceed the lesser of five hundred thousand dollars ($500,000) or 1 percent of the net worth of the debt buyer.

(c) (1) In the case of any successful action to enforce liability under this section, the court shall award costs of the action, together with reasonable attorney’s fees as determined by the court.

(2) Reasonable attorney’s fees may be awarded to a prevailing debt buyer upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith.

(d) In determining the amount of liability under subdivision (b), the court shall consider, among other relevant factors, the frequency and persistence of noncompliance by the debt buyer, the nature of the noncompliance, the resources of the debt buyer, and the number of persons adversely affected.

(e) A debt buyer shall have no civil liability under this section if the debt buyer shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, and occurred notwithstanding the maintenance of procedures reasonably adopted to avoid any error.

(f) An action to enforce any liability created by this title shall be brought within one year from the date of the last violation.

(g) Recovery in an action brought under the Rosenthal Fair Debt Collection Practices Act (Title 1.6C (commencing with Section 1788)) or the federal Fair Debt Collection Practices Act (15 U.S.C. Sec. 1692 et seq.) shall preclude recovery for the same acts in an action brought under this title.

Civ. § 1788.64

Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable.

Civ. § 1788.66

Notwithstanding any other law, a person shall not sell or assign any unpaid COVID-19 rental debt, as defined in Section 1179.02 of the Code of Civil Procedure, for the time period between March 1, 2020, and September 30, 2021, of any person who would have qualified for rental assistance funding provided by the Secretary of the Treasury pursuant to Section 501 of Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260) or Section 3201 of Subtitle B of Title III of the federal American Rescue Plan Act of 2021 (Public Law 117-2), if the person’s household income is at or below 80 percent of the area median income for the 2020 or 2021 calendar year.

General information, not legal advice. Statutory text is reproduced from the official California source and may not reflect the most recent amendments.

← California HOA laws California Codes ↗
Advertisement