New Calif. Law Removes Attorney Exemption from Rosenthal Act "Debt Collector" Definition

Published on:
31 October 2019 at 11:00 a.m. ET

Written by: Katie Grzechnik Neill – General Counsel & Regulatory Editor – insideARM

http://www.insidearm.com/news/00045630-new-calif-law-removes-attorney-exemption-/

On October 7, 2019, California's Governor signed into law Senate Bill No. 187, which amends California's Rosenthal Debt Collection Practices Act. Currently, the Rosenthal Act excludes attorneys or counselors at law from the definition of "debt collector." The new law will change this.

Below is the current definition of "debt collector" in the Rosenthal Act, redlined to show the change:

(c) The term “debt collector” means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or that person 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. collection.

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This new change goes into effect on January 1, 2020.

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