California Updates Debt Collectors on Processing Delays

On May 23, California’s Department of Financial Protection and Innovation (DFPI or Department) sent an email notifying license applicants and prospective license applicants that the issuance of licenses under the Debt Collection Licensing Act is unavoidably delayed at this time.

The original deadline for applicants was December 31, 2021; however, that deadline was extended to March 15 in mid-December. Two months later, and the Department still finds itself unable to process new applications.

The Federal Bureau of Investigation (FBI) has informed the DFPI that new changes are needed to state agency protocols — specifically fingerprinting — for requesting federal background checks. According to the Department, the delay was unforeseen, but is necessary to enable the DFPI to fully implement the licensing background check required under the Debt Collection Licensing Act.

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