CaliforniaFair Debt Settlement Practices Act.
What it does
Existing law, the Fair Debt Settlement Practices Act, prohibits a debt settlement provider from engaging in false, deceptive, or misleading acts or practices, as specified, when providing debt settlement services. Existing law requires a debt settlement provider to provide a consumer with certain disclosures along with an unsigned copy of the proposed written contract between the debt settlement provider and the consumer and prohibits certain unfair, abusive, or deceptive practices in connection with payment processor activities. Existing law authorizes a consumer to terminate a contract for debt settlement services at any time without a fee or penalty of any sort by notifying the debt settlement provider, at which time the debt settlement provider is required to, among other things, provide, within 3 business days, a detailed accounting of any amounts received or expected to be received by the debt settlement provider from the consumer's settlement account after the debt settlement provider received effective notice of request for cancellation.
More detail
Existing law authorizes a consumer to bring a civil action for violation of these provisions.
This bill would expand the protections for consumers described above to include commercial debtors, as defined, and make other, nonsubstantive and related changes.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Aug 29In committee: Held under submission.Latest
- Aug 18In committee: Referred to suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 16From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 1.) (July 15). Re-referred to Com. on APPR.Minor
- Jul 15
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jul 7Read second time and amended. Re-referred to Com. on JUD.Major
- Jul 3From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (July 2).Major
- Jul 2
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]. Result: pass.Upper
- Jun 12In committee: Hearing postponed by committee.
- May 28Referred to Coms. on B. & F.I., JUD. and APPR.Minor
- May 15In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 1166 Valencia Assembly Third Reading. Result: pass.Lower
- May 15Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 1560.)Passed Assembly
- May 7Read second time. Ordered to third reading.Minor
- May 6From committee: Do pass. (Ayes 9. Noes 0.) (May 5).Minor
- May 5
- Vote recorded Do pass. Result: pass.Lower
- Mar 13Referred to Com. on B.&F.Minor
- Feb 24Read first time.Minor
- Feb 22From printer. May be heard in committee March 24.
- Feb 21Introduced. To print.Introduced