Rosenthal Fair Debt Collection Practices Act (California)

1977

Robbins-Rosenthal Fair Debt Collection Practices Act Signed into Law

The Robbins-Rosenthal Fair Debt Collection Practices Act was passed to address unfair and deceptive collection practices that "undermined the public confidence which is essential to the continued functioning of the banking and credit system." Its purpose is to prohibit debt collectors from engaging ins unfair and deceptive practices and supplement the federal Fair Debt Collections Practices Act.¹

1999

Robbins-Rosenthal Fair Debt Collection Practices Act Incorporates Federal Fair Debt Collections Practices Act

Assembly Bill 969 amended the law to explicitly incorporate many of the obligations and remedies in the Federal Debt Collection Practices Act—requiring debt collectors to comply with the Rosenthal Act as well as sections 1692b through 1692j of the Federal Debt Collection Practices Act. In doing so, Assembly Bill 969 opened the door to allow class action suits (which were previously barred).

2000

Robbins Removed From Bill Title

Assembly Bill 1331 removed references to the name "Robbins" from the

• Robbins-Rosenthal Debt Collection Practices Act
• Areias-Robbins Credit Card Full Disclosure Act of 1986
• Areias-Robbins Retail Installment Account Full Disclosure Act of 1986
• Robbins-Vuich-Calderon Financial Institutions Act of 1986
• Robbins Courthouse Construction Fund
• Robbins-Nielsen County Revenue Stabilization Act of 1987
• Statham-Robbins Courthouse Construction Fund
• Robbins-Seastrand Health Insurance Guaranty Association
• Rosenthal-Robbins Auto Insurance Nondiscrimination Law
• Robbins-McAlister Financial Responsibility Act
• Robbins Rape Evidence Law

2002

Waivers of Rosenthal Fair Debt Collection Practices Act Void As Public Policy

In 2002, the Rosenthal Act was amended to state clearly that any contract that purports to waive the protections of the Rosenthal Act would be contrary to public policy, void and unenforceable. 

2019

Rosenthal Fair Debt Collection Practices Act Amended

Senate Bill 187 amended the law to explicitly include mortgage debt as a covered consumer debt.

2020

Debt Collection Licensing Act Adds Requirements for Debt Collectors

Senate Bill 908, the Debt Collection Licensing Act requires that "any person engaging in the business of debt collection in California first obtain a license from the Commissioner of Business Oversight." Senate Bill 908 also amended the Rosenthal Act to require that debt collectors include their California debt collector license number upon request and on any written or digital communication. 

2021

Rosenthal Fair Debt Collection Practices Act Amended

Assembly Bill 430 added protections for debtors alleging identity theft, requiring debt collectors and debt buyers to accept a signed Federal Trade Commission Identity Theft Report instead of the previously required police report to claim identity theft (requiring the collector to cease collection activities for a time). 

Assembly Bill 1020 added protections for people in medical debt—prohibiting a hospital from selling a patient's debt to a debt buyer or collections agency unless the hospital first confirms that the patient is not eligible for financial assistance (or the patient hasn't responded to the hospital's attempts to offer or apply for financial assistance for 180 days).

Who

The Rosenthal Fair Debt Collection Practices Act (Rosenthal Act) applies to debt collectors, but has a broader definition of debt collectors and debt collection then the federal Fair Debt Collection Practices Act (FDCPA). Unlike the federal FDCPA, which covers only debt collectors engaging in collections for others, the Rosenthal Act covers original creditors collecting their own debts.

In other words, a credit card company attempting to collect directly from a customer would not be covered by the FDCPA, but would be covered if the credit card company contracted with a third party debt collector. The Rosenthal Act simplifies this and applies to any person who, as part of their ordinary course of business, engages in debt collection—which it broadly defines as "any practice or act in connection with the collection of consumer debts." 

The Rosenthal Act also covers those who write or sell forms, letters and other collection media intended to be used for debt collection.²

Attorneys must also comply.³

What

Subject to limited exceptions, debt collectors in California must comply with both the Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act.⁴

Communication with the Debtor in Connection with Debt Collection

Debt collectors may not use obscene or profane language when collecting a debt or use or threaten

• physical force or violence
• criminal accusation or arrest for nonpayment 
• to defame the debtor⁵

When communicating with a debtor, debt collectors may not

• initiate communications (other than statements of account) with the debtor if the collector has been notified in writing that the debtor is represented by an attorney⁶
• place a call without disclosing their identity (and debt collector license number upon request)
• cause expenses (e.g. long distance fees) by misrepresenting the purpose of the call
• continuously call, annoy, or harass the person being called
• send a written or digital communication that does not include the California license number of the collector in at least 12-point font
• send written communications that display any information intended to be seen by any other person and embarrass the debtor⁷

When communicating with a debtors, debt collectors may not falsely represent that 

• they are an attorney
• they are affiliated in any way with a government agency 
• a debt is going to be reported to a consumer reporting agency or that the debt collector is a consumer reporting agency
• a legal proceeding is about to or has been instituted
• a debt will be sold or assigned to a debt collector for collection⁸

Communication with a Debtor’s Employer in Connection with Debt Collection

Debt collectors may not communicate with a debtor’s employer regarding the debt unless the communication is necessary to the collection of the debt or the debtor’s attorney has consented in writing.⁹

Communication with a Debtor’s Family in Connection with Debt Collection

Debt collectors may not communicate with any member of the debtor’s family (other than spouse or parents/guardians, if the debtor is a minor or lives with the parent or guardian) except to locate the debtor or if the debtor’s attorney has consented in writing.¹⁰

Disclosure of Debtor Lists/Names 

Debt collectors may not disclose a list of debtors (sometimes called a deadbeat list) or advertise consumer debt for sale by naming a debtor.¹¹

Collection of Discharged and Time-Barred Debts

Debt collectors are required to provide certain disclosures to individuals whose debts have been discharged in bankruptcy or are time-barred (past the date someone can be sued).¹²
 

Californians have rights under both the Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act.

Receive No Contact if the Individual Has a Lawyer¹³

A debt collector may not contact an individual about a debt if their lawyer sends written notice to the collector.

Receive No Threats, Obscene Language, Harassment, or False or Misleading Representations¹⁴

A debt collector may not threaten physical force or violence or use obscene language or profanity when communicating with a debtor. In addition, collectors may not harass an individual or falsely represent who they are or are affiliated with or what kind of legal action they can take.

Not Have Information About a Debt Revealed to Others¹⁵

A debt collector may not talk with a person’s employer or family member regarding a debt (except in the case of a spouse or parent/guardian if the debtor is a minor or lives with the parent/guardian).

A debt collector may not send a postcard or envelope that shows any information about the debt that would be intended to embarrass someone. 

Know if the Statute of Limitations Has Expired¹⁶

Debt collectors must notify individuals (in the first communications after the debt has become time-barred) that they will not be sued and state whether the debt may be reported to a credit reporting agency. 

Request Information about the Debt¹⁷

Individuals have the right to send a third-party debt collector a written request for information regarding

• collector’s authority to collect the debt on behalf of the creditor
• balance and an explanation of the amount, nature and reason for any interest and fees
• date the debt became delinquent or date of last payment
• name and address of the creditor
• name and last known address of the debtor as they appear in the creditor’s records
• name and addresses of all people/entities other than the debt collector to which the debt has been assigned
• debt collector's California license number

The debt collector must provide this information for free within 30 calendar days of receiving the request. 

Have Collections Stopped if the Debt is a Result of Identity Theft¹⁸

Victims of identity theft have the right to have a collector cease collections if they provide both a

• written statement that the debtor is the victim of identity theft with respect to the specific debt being collected
• copy of a Federal Trade Commission identity theft report or a police report for the specific debt being collected

Sue if a Debt Collector Violates the Law¹⁹

An individual has the right to sue if a debt collector violates the Rosenthal Fair Debt Collection Practices Act.

Since debt collectors in California are subject to federal laws as well as the Rosenthal Fair Debt Collection Practices Act, individuals can report complaints to federal agencies with enforcement authority—including the Federal Trade Commission and the Consumer Financial Protection Bureau.

Private Right of Action

Individuals can file a lawsuit to recover actual damages and attorneys’ fees if a debt collector violates the Rosenthal Fair Debt Collection Practices Act and the action is brought within one year from the date the violation occurred. If the debt collector acted willfully and knowingly, a court can award an additional $100 to $1,000.²⁰ 

Debt collectors can avoid civil liability in two ways: by demonstrating that they have cured (fixed) the violation within 15 days of discovery or receiving written notice of the violation, or by demonstrating that the violation was not intentional and occurred while the debt collector was otherwise following procedures that were put in place to avoid that kind of violation.

California Attorney General

The California Attorney General’s office can enforce debt collector violations. Individuals can file complaints with the Attorney General’s office, but it will not take individual action on their behalf.

1. Cal. Civ. Code § 1788.1.
2. Cal. Civ. Code § 1788.2.
3. Cal. Bus. & Prof. Code § 6077.5(a).
4. Cal. Civ. Code § 1788.17.
5. Cal. Civ. Code § 1788.10 – 1788.11.
6. Cal. Civ. Code § 1788.14.
7. Cal. Civ. Code § 1788.11.
8. Cal. Civ. Code § 1788.13.
9. Cal. Civ. Code § 1788.12.
10. Cal. Civ. Code § 1788.12.
11. Cal. Civ. Code § 1788.12.
12. Cal. Civ. Code § 1788.14.
13. Cal. Civ. Code § 1788.14.
14. Cal. Civ. Code § 1788.10, 1788.11, 1788.17.
15. Cal. Civ. Code § 1788.12.
16. Cal. Civ. Code § 1788.14.
17. Cal. Civ. Code § 1788.14.5.
18. Cal. Civ. Code § 1788.18.
19. Cal. Civ. Code § 1788.30.
20. Cal. Civ. Code § 1788.30.