California debt law
California debt collection laws
California's Rosenthal Act goes further than the federal law: it covers banks and lenders collecting their own accounts, and collectors need a state license. What the law bans, what collectors must send you, and where to report one.
How does the Rosenthal Act compare with the federal FDCPA?
Most federal protections apply in California as well, because state law adopts them. The table shows where California adds its own rule.
| Practice | California law | Federal law (FDCPA) |
|---|---|---|
| Who is covered | Anyone who regularly collects, including a lender collecting its own accounts. Source (California Legislature, opens in a new tab) | Mainly third-party collectors and debt buyers. |
| License to collect | A license from the DFPI is required. Source (California Legislature, opens in a new tab) | No federal license. |
| License number | On every letter, in 12-point type or larger. Source (California Legislature, opens in a new tab) | No such rule. |
| Threats | No threat of arrest or of taking wages or property unless it is planned and lawful. Source (California Legislature, opens in a new tab) | A similar ban on false or misleading threats. |
| Too many calls | No calls so frequent they amount to harassment. Source (California Legislature, opens in a new tab) | Regulation F presumes harassment past 7 calls in 7 days. |
| Old debts | A written "we will not sue" notice, and no lawsuit. Source (California Legislature, opens in a new tab) | No lawsuit or threat of one. |
| Proof of the debt | Records on request within 30 days, 15 for debt buyers. Source (California Legislature, opens in a new tab) | A validation notice, and verification if you dispute in writing within 30 days. |
| Medical debt on credit reports | Not allowed at all. Source (California Legislature, opens in a new tab) | No matching rule in the FDCPA. |
Does the Rosenthal Act cover the original creditor?
Yes, and that is its biggest difference from federal law. The federal FDCPA mostly reaches collection agencies and debt buyers. California's definition covers anyone who regularly collects on behalf of that person or others (California Legislature, opens in a new tab), so a card issuer or lender collecting its own accounts has to follow the same rules.
The law also protects a person who is a guarantor of some small business credit, up to $500,000.
Does a debt collector need a California license?
Yes. Under the Debt Collection Licensing Act, no one may be in the business of debt collection in California without a license (California Legislature, opens in a new tab), whether the collector is based here or collects from Californians from another state.
A collector must print its license number on letters and give it to you when you ask. The DFPI suggests checking a license (California Department of Financial Protection and Innovation, opens in a new tab) on NMLS Consumer Access.
A letter with no license number, or a caller who will not give one, is a reason to check before you pay anything.
What must a debt buyer send you in California?
A company that bought a charged-off account cannot write to you about it unless it already holds the key facts: the charge-off balance, the last payment date, the original creditor and every later owner. Its first letter must tell you that you can ask for those records (California Legislature, opens in a new tab).
If you ask in writing, it has 15 calendar days to send them for free. If it cannot, it must stop collecting until it does.
Can medical debt show up on your credit report in California?
No. California law says a person shall not furnish information (California Legislature, opens in a new tab) about a medical debt to a consumer credit reporting agency, and a medical debt knowingly reported becomes void and unenforceable.
For hospital bills, a collector must also say in its first letter that it will wait at least 180 days (California Legislature, opens in a new tab) from the first bill before suing.
Which California law covers debt settlement companies?
A separate law, the Fair Debt Settlement Practices Act, covers companies like ours that negotiate reduced payoffs. Before you sign, the company must give you the contract and a set of disclosures three days in advance (California Legislature, opens in a new tab), including that results cannot be predicted and that bankruptcy may be an alternative.
- No fee until a debt is settled and you have made a payment under that settlement.
- You may cancel at any time, by phone, email or letter, without a fee or penalty.
- A monthly statement of what was settled and what fees were charged.
- A consumer can sue for $1,000 to $5,000 per violation, within 4 years (§ 1788.305 (California Legislature, opens in a new tab)).
Since February 15, 2025, debt settlement providers must also register with the DFPI (California Department of Financial Protection and Innovation, opens in a new tab). Our own status is on our licensing and disclosures page. Check any company's registration before you enroll.
How do you report a debt collector in California?
- Write down each call and keep each letter: date, time, name and what was said.
- File a complaint with the DFPI (California Department of Financial Protection and Innovation, opens in a new tab), which licenses debt collectors.
- You can also complain to the California Attorney General (California Attorney General, opens in a new tab) and the CFPB (CFPB, opens in a new tab).
- To sue under the Rosenthal Act, talk to a lawyer soon: the deadline is one year from the violation.
We are not a law firm and cannot tell you whether a collector broke the law. A consumer lawyer or legal aid office can, often at no cost to you.
Where to get legal help
Free and low-cost legal help.
We are not a law firm and cannot give legal advice. These are the people who can, many of them free. None of them pays us, and we do not pay them.
-
A lawyer
A State Bar certified lawyer referral service
The State Bar of California certifies referral services by region. Lawyers they refer must be in good standing and carry professional liability insurance.
Open the State Bar list (opens in a new tab) -
Legal aid
LawHelpCA
Maintained by the Legal Aid Association of California: plain-language legal information and a finder for free legal services near you.
Open LawHelpCA (opens in a new tab) -
Court self-help
California Courts Self-Help Guide
The California courts' own guide to debt lawsuits: your options, and step-by-step instructions for responding by type of debt.
Open the Self-Help Guide (opens in a new tab) -
Legal aid
Free legal aid near you
Legal aid offices give free civil legal help, including with debt lawsuits, to people who qualify. The Legal Services Corporation finder lists the office for your area.
Find legal aid (LSC) (opens in a new tab) -
A lawyer
How to find a consumer lawyer
The CFPB explains where to look for a lawyer who handles debt collection cases, and what experience to look for.
Read the CFPB guide (opens in a new tab)
Things you should know
The downsides, stated plainly.
Read these before you enroll anywhere, including with us. They apply to every debt settlement program.
- Your credit score will drop during the program, and late payments stay on your credit report.
- Creditors may keep collecting while you save, and they can sue. The program does not stop legal action.
- Interest and late fees can keep adding to your balances until each account settles.
- Forgiven debt may be taxable income. A creditor may send you IRS Form 1099-C.
- Fees apply. The fee is a percentage of your enrolled debt, set individually, and charged only after a settlement is reached.
- Not all creditors agree to settle, and not everyone completes the program.
- We do not guarantee any amount, percentage or timeline.
- Debt settlement is not available in all states. We are not a nonprofit or a credit counseling service, and we do not lend money.
- We do not give legal or tax advice. Talk to an attorney or a tax professional about your situation.
Straight answers
California collection law, plain answers.
Rather hear it from a person? 866-659-7966
What is the Rosenthal Act?
California's Rosenthal Fair Debt Collection Practices Act. It bans abusive and deceptive collection practices, applies to original creditors as well as collectors, and adopts most federal FDCPA rules.
Do debt collectors need a license in California?
Yes. The Debt Collection Licensing Act requires a license from the Department of Financial Protection and Innovation, and collectors must show the license number on their letters.
Can a debt collector report medical debt in California?
No. California law bars furnishing information about a medical debt to a credit reporting agency, and a debt knowingly reported becomes unenforceable.
How long do I have to sue a collector under the Rosenthal Act?
One year from the date of the violation. A lawyer can tell you whether you have a claim.
Sources
Where the facts on this page come from. Each link opens the original in a new tab.
- 01 California Legislature Cal. Civ. Code § 1788.2: Rosenthal Act definitions (debt collector includes those collecting their own debts) (opens in a new tab)
- 02 California Legislature Cal. Civ. Code § 1788.10: threats and false accusations (opens in a new tab)
- 03 California Legislature Cal. Civ. Code § 1788.11: calls, caller identity and license numbers (opens in a new tab)
- 04 California Legislature Cal. Civ. Code § 1788.14: represented debtors, time-barred debt notices, hospital debt (opens in a new tab)
- 05 California Legislature Cal. Civ. Code § 1788.14.5: records a collector must send on request within 30 days (opens in a new tab)
- 06 California Legislature Cal. Civ. Code § 1788.17: the federal FDCPA rules apply through state law (opens in a new tab)
- 07 California Legislature Cal. Civ. Code § 1788.30: remedies ($100 to $1,000; one year to sue) (opens in a new tab)
- 08 California Legislature Cal. Civ. Code § 1788.52: what a debt buyer must have and send (opens in a new tab)
- 09 California Legislature Cal. Civ. Code § 1785.27: medical debt may not be reported to credit bureaus (opens in a new tab)
- 10 California Legislature Cal. Fin. Code § 100001: debt collectors must be licensed (Debt Collection Licensing Act) (opens in a new tab)
- 11 California Department of Financial Protection and Innovation Debt Collection Licensing Act: who must be licensed and how to look up a licensee (opens in a new tab)
- 12 California Legislature Cal. Civ. Code § 1788.302: Fair Debt Settlement Practices Act rules (disclosures, fees, cancellation) (opens in a new tab)
- 13 California Legislature Cal. Civ. Code § 1788.305: Fair Debt Settlement Practices Act remedies (opens in a new tab)
- 14 California Department of Financial Protection and Innovation Debt settlement services: registration under the California Consumer Financial Protection Law (from Feb. 15, 2025) (opens in a new tab)
- 15 California Department of Financial Protection and Innovation Submit a complaint (including debt collectors and debt relief providers) (opens in a new tab)
- 16 California Attorney General Consumer complaint against a business or company (opens in a new tab)
- 17 CFPB Submit a complaint (opens in a new tab)
- 18 FTC Fair Debt Collection Practices Act (statute text) (opens in a new tab)
- 19 eCFR 12 CFR 1006.14: Harassing, oppressive, or abusive conduct (call frequency) (opens in a new tab)
- 20 Cornell LII 15 U.S. Code 1692g: Validation of debts (opens in a new tab)
Next step
Collectors calling about several debts?
If you are not in court, run an illustrative estimate on your unsecured debt, with the fee shown on its own line.
Four short steps
Your estimate first. Contact details last.
- 1How much you owea close guess is fine
- 2What kinds of debtpick all that apply
- 3Which state you live inchecked before anything else
- 4Your estimate, then a real person if you want one