CaliforniaConsumer debt: charged-off debts.
What it does
Existing law places various requirements on, and prohibits certain actions by, debt buyers with respect to charged-off consumer debts.
More detail
This bill would prohibit a charged-off consumer debt from being sold or assigned more than one year after the debt was charged off. The bill would require a charge-off creditor to notify the consumer when the creditor sells or assigned a charged-off consumer debt to a debt buyer.
Existing law prescribes various time periods for the commencement of actions other than for the recovery of real property, including within 4 years for an action upon any contract, obligation, or liability founded upon an instrument in writing, as specified.
This bill would prohibit an action from being brought to recover a charged-off consumer debt on or after the date that is the earliest of specified dates. The bill would prohibit a debt buyer from bringing an action to recover a charged-off consumer debt after one year from the date the debt was charged off.
Where do you stand?
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Feb 2Returned to Secretary of Senate pursuant to Joint Rule 56.Latest
- 2025
- Apr 23April 30 hearing postponed by committee.
- Apr 22April 22 set for first hearing. Failed passage in committee. (Ayes 1. Noes 2. Page 837.) Reconsideration granted.Minor
- Vote recorded [First] hearing set for [04-22-2025]: Failed passage in Committee. Reconsideration granted. Result: pass.Upper
- Vote recorded Do pass, but first be re-referred to the Committee on [Banking and Financial Institutions]. Result: fail.Upper
- Apr 22Set for hearing April 30 in B. & F.I. pending receipt.
- Apr 9Set for hearing April 22.
- Apr 2Re-referred to Coms. on JUD. and B. & F.I.Minor
- Mar 24From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.Major
- Mar 12Referred to Com. on RLS.Minor
- Feb 24Read first time.Minor
- Feb 24From printer. May be acted upon on or after March 24.
- Feb 21Introduced. To Com. on RLS. for assignment. To print.Introduced