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The Debt Collection Licensing Act authorizes the DFPI to examine licensees for violations of laws relating to unlawful service of process. This includes laws that prohibit attempts to use the judicial process to collect a debt where service of summons has not been legally effected. (Fin. Code, §§ 100004 subd. (a)(1); 100003 subd. (b)(3); 100005 subd. (a); 100019, subd. (a); and 100023, subd. (a).) Such collection attempts may also violate the California Consumer Financial Protection Law’s prohibition against unlawful, unfair, deceptive, or abusive acts or practices, the Rosenthal Fair Debt Collection Practices Act, and possibly other laws within the DFPI’s examination and enforcement authority (See Fin. Code, § 90003, subd. (a); Civ. Code, §§1788.15. subd. (a), and 1788.17.)
The DFPI reminds licensees that the Code of Civil Procedure permits only four methods of service of a summons on a person within California. (See Code Civ. Proc., § 415.10 et seq.) Email or other forms of electronic service are not included as permissible methods of service under California law. (Id.) A person seeking to serve a summons may not use Code of Civil Procedure section 417.10, subdivision (d), to establish proof of service of a summons by “written admission of the party,” unless the summons was in fact served by one of the four permissible methods of service listed in the Code of Civil Procedure. Inducing a consumer to “consent” to email service of a summons and purporting to serve a summons by email does not meet a licensee’s service of summons obligation under the Code of Civil Procedure.
The DFPI encourages licensees to ensure that the business practices of its service providers do not cause the licensee to violate the DCLA or other laws administered by the DFPI. In administering and ensuring compliance with the DCLA, the DFPI will investigate complaints and will examine debt collector licensees for violations related to purported electronic service of process within California. Licensees found to be engaging in, or hiring others to engage in, the unlawful service of process will be held accountable.
Annual Report – The Commissioner will be requiring debt collectors that are licensed as of December 31, 2025, to file an annual report by March 16, 2026, for the year 2025. The requirements for the annual report can be found in California Financial Code section 100021(a)(1) – (4), (6) and (7). The annual report must be filed through the DFPI Self-Service Portal. A draft of the report will be sent in December to the designated email set up in the licensee’s portal account. Licensees will be able to input the reports from January 2, 2026, through March 16, 2026.
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