Debt Collection Advisory Committee And DFPI Review Industry Feedback On DCLA Regulations

The California DFPI’s Debt Collection Advisory Committee is actively reviewing industry feedback on proposed regulations under the Debt Collection Licensing Act (DCLA) as part of its 2026 rulemaking and supervisory agenda.

What the Advisory Committee Does

• The Debt Collection Advisory Committee is a seven‑member board created under California Financial Code section 100025 to advise the DFPI Commissioner on debt collection business issues, including proposed fee schedules and regulatory requirements under the DCLA.

• Members include a consumer representative and representatives from debt collection, debt‑buying, third‑party collection, and collection law firms, and they are appointed for two‑year terms to provide ongoing feedback as DFPI implements and refines licensing rules.

Current DCLA Regulatory Context

• The DCLA, enacted in 2020 (SB 908) and operative since January 1, 2022, for the first time requires California debt collectors to obtain a DFPI license and subjects them to DFPI supervision and enforcement.

• DFPI’s rulemakings under the DCLA have addressed issues such as scope of who must be licensed, application procedures, annual report and record‑retention obligations, and ongoing examination authority over licensees.

Examples of Industry Feedback

• Trade associations and industry groups have submitted comment letters on draft DCLA regulations, raising concerns that DFPI’s proposed licensing scope (for example, section 1850.1) may extend to servicers that obtain and service debt prior to default in ways that differ from the federal FDCPA and other state laws.

• Commenters have urged DFPI to: (1) better align the definition of “debt collector” with the FDCPA, (2) consider exemptions for servicers and affiliates under common ownership, and (3) refine cost and burden estimates for compliance programs required by the proposed rules.

How DFPI Is Incorporating Feedback

• DFPI has used multiple rounds of invitations for comments and draft text under the DCLA and related CCFPL rulemakings, signaling that it is revising proposals in response to specific industry, consumer, and trade‑group input.

• The Advisory Committee’s meetings (including those noticed for 2026) serve as a forum for DFPI staff and stakeholders to discuss implementation issues, compliance burdens, and supervisory priorities before DFPI finalizes or amends DCLA regulations.

Current Obligations for DCLA Licensees (2026)

• As of February 2026, all entities licensed under the DCLA before January 1, 2026 must file a DCLA annual report with DFPI by March 16, 2026, as required by Financial Code section 100021(a).

• DFPI is simultaneously reminding licensees that certain practices, such as attempting to serve court summons electronically instead of using the limited permitted in‑person methods under California’s Code of Civil Procedure, are unlawful and may trigger enforcement under the DCLA and other debt collection laws.