California's Robbins-Rosenthal Fair Debt Collection Practices

California consumer debt collection may be subject to the Robbins-Rosenthal Fair Debt Collection Practices Act. This act (begins with California Civil Code Section 1788) is similar to the Federal Act, but with a few differences. Attorneys are excluded because they are covered by State Bar provisions (B&P 6077.5).

However, the provisions may apply to creditors, as well as the persons who sell forms for debt collection. The definitions of debt collector included in the Act is as follows

"(c) The term "debt collector" means any person who, in the ordinary course of business, regularly on behalf of himself or herself or others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters and other collection media used or intended to be used for debt collection, but does not include an attorney or counselor at law."

Another provision of this Act prohibits a "debt collector" (see above) from collecting or attempting to collect from the debtor, collection fees or charges or expenses, except where specifically permitted by California law.

Anyone collecting debts in California should become familiar with the provisions of this Act.

Other Laws Involved In Debt Collection

Many California laws, far too numerous to mention here, may apply to specific transactions or industries. One example would be a provision covering health studio contracts. These contracts are restricted in duration to three years or less, required to be in writing,dated, and may not require payments exceeding $1,000.00. A three-day right to cancel must be included for the buyer, along with other rules. An excellent discussion of these contract provisions is contained in "Overview of California's Health Studio Services Contract Law," provided by State of California Department of Consumer Affairs, and linked below.

The California Department of Consumer Affairs also makes available a "Checklist of Significant California and Federal Consumer Laws." Although this "checklist" does not contain the text to the legal provisions, its overwhelming size (approximately 30 pages) will give an indication of the many specialized rules which may apply to transactions in California. Click on the Department of Consumer Affairs Checklist button below to link to this document.

LAWDOG Credit and Collection Basics 1998 CD-Rom is illustrated using the Fair Credit Reporting Act as amended, the Federal Equal Credit Opportunity Act (Reg. B), provisions of the Bankruptcy Code, and the Federal Fair Debt Collection Practices Act.  It is available for only $79.95, plus shipping right this very minute at LAWDOG Professional Bookstore