Debt Collection Licensing Act: collection agencies.

Existing law, the Debt Collection Licensing Act, provides for the licensure, regulation, and oversight of debt collectors by the Commissioner of Business Oversight. The act prohibits a person from engaging in the business of debt collecting in this state without a license and requires a licensee to comply with reporting, examination, and other oversight by the commissioner. Existing law defines a collection agency as a business entity through which a debt collector or an association of debt collectors engage in debt collection. Existing law requires a person applying for a license to, among other things, pay an application fee, sign the application under penalty of perjury, and submit to a criminal background check by the Department of Justice. This bill would revise the definition of a collection agency to additionally include a business entity that acts as a broker, forwarder, intermediary, or middleman that sends or refers repossession assignments or repossession orders to repossession agencies or repossession agents in California. By expanding the pool of applicants required to apply for a license under the act, this bill would expand the scope of the crime of perjury, thereby imposing a state-mandated local program. The bill would also make nonsubstantive changes to the act. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.