# Cal. Fin. Code §§ 100000-100027 — California Debt Collection Licensing Act

- Citation: Cal. Fin. Code, §§ 100000-100027
- Code: Financial Code, Division 1.6
- Subject: DFPI licensing requirement for debt collectors and debt buyers
- Source: https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=FIN
- Last verified: 2026-05-13

> Authored from canonical California statutory sources; verify
> against leginfo.legislature.ca.gov before relying.

## Overview

The California Debt Collection Licensing Act (CDCLA), enacted
by SB 908 (2020) and effective **January 1, 2022**, requires
both **debt collectors** and **debt buyers** to obtain a
license from the California Department of Financial Protection
and Innovation (DFPI). Before 2022, California had no general
licensure regime for debt collectors (unlike Oregon's ORS 697,
in place since 1989).

The CDCLA's primary impact on litigation:

1. Non-licensure is an **affirmative defense** to a debt-
   collection action.
2. Non-licensure is a **UCL "unlawful" predicate**.
3. The license is publicly searchable at the DFPI website,
   making discovery and pre-suit verification easy.

## § 100000 — Title

This division shall be known and may be cited as the Debt
Collection Licensing Act.

## § 100001 — DEFINITIONS

**(a)** "Affiliate" means any person who, directly or
indirectly, controls or is controlled by, or is under common
control with another person.

**(b)** "Commissioner" means the Commissioner of Financial
Protection and Innovation.

**(c)** "Consumer" means a natural person, including a sole
proprietor.

**(d) — "DEBT COLLECTOR"**: "Debt collector" means any person
who, in the ordinary course of business, regularly, on the
person's own behalf or on behalf of others, engages in debt
collection. The term includes a debt buyer.

**(e)** "Debt collection" means any act or practice in
connection with the collection of consumer debt.

**(f)** "Debt buyer" has the same meaning as defined in Section
1788.50 of the Civil Code.

**(g)** "Consumer debt" has the same meaning as defined in
Section 1788.2 of the Civil Code.

**(h)** "Department" means the Department of Financial
Protection and Innovation.

**(i)** "Licensee" means a person licensed under this division.

### Definitional scope

**Critical**: § 100001(d) imports the Rosenthal Act's broad
definition of "debt collector" (via cross-reference to Civ.
Code § 1788.2) and **explicitly includes debt buyers**.
Combined, this means CDCLA licensure is required of:

- Third-party collection agencies
- First-party creditors collecting their own debts (per
  Rosenthal § 1788.2(b)/(c) definition)
- Debt buyers (entities that purchase charged-off debt for
  collection)
- Collection law firms (subject to attorney exemption analysis)

## § 100002 — LICENSE REQUIREMENT

**(a) — MANDATORY LICENSURE**: On and after January 1, 2022,
no person shall engage in the business of debt collection in
this state without first obtaining a license from the
commissioner.

**(b)** A license issued under this division is not
transferable.

**(c)** A separate license is required for each branch office
of the licensee.

**(d)** The license shall be displayed at the licensee's
principal place of business.

## § 100003 — EXEMPTIONS

**(a) The following persons are exempt from this division:**

**(1)** Persons licensed under and conducting business under
specific other California licensing regimes:
- Banks (Cal. Fin. Code Div. 1, 1.1, or 1.2)
- Trust companies
- Industrial loan companies
- Credit unions
- Insurance companies
- Real estate licensees (in limited scope)

**(2) — ATTORNEY EXEMPTION**: A licensed attorney at law of
this state who, in the ordinary course of the licensee's
practice of law, is engaged in collection of debts on behalf
of a client.

**Important caveat**: The attorney exemption applies only when
the attorney is collecting on behalf of a client, NOT when the
attorney is the actual party in interest (e.g., a law firm
that has purchased a debt portfolio).

**(3)** Government agencies and instrumentalities collecting
debt owed to them.

**(4)** A nonprofit organization providing debt-counseling
services without compensation.

**(5)** Process servers serving process in connection with a
debt-collection action.

## § 100005 — License application

**(a)** An application for a license shall be made in writing
to the commissioner on a form prescribed by the commissioner.

**(b)** The application shall include:
- Name and business address of applicant
- Background and identity of principals (officers, directors,
  partners, members, etc.)
- Identification of branch offices
- Surety bond information
- Application fee

**(c)** Application fee: amount set by commissioner; covers
investigation costs.

**(d)** The commissioner may investigate the applicant's
character, fitness, financial responsibility, and reputation.

## § 100007 — Surety bond

**(a)** Each applicant or licensee shall maintain a surety
bond in an amount determined by the commissioner, not less
than $25,000.

**(b)** The bond shall be issued by a surety insurer.

**(c)** The bond shall be conditioned upon faithful compliance
with this division.

## § 100008 — License denial / suspension / revocation

The commissioner may deny, suspend, or revoke a license for:

- Material misrepresentation in the application
- Failure to comply with this division
- Violation of the Rosenthal Act, FDBPA, or other consumer-
  protection laws
- Insolvency
- Felony conviction involving fraud, dishonesty, or moral
  turpitude
- Failure to maintain bond
- Failure to pay fees / fines

## § 100010 — License renewal

Annual renewal required; renewal fee set by commissioner.

## § 100012 — Continuing education

The commissioner may establish continuing-education requirements
for licensees.

## § 100015 — Examination and supervision

**(a)** The commissioner may conduct on-site and off-site
examinations of licensees to determine compliance.

**(b)** Licensees shall maintain books and records as
prescribed.

**(c)** Licensees are subject to ongoing supervision by the
DFPI.

## § 100018 — ROSENTHAL ACT INCORPORATION

**A licensee shall comply with the Rosenthal Fair Debt
Collection Practices Act (Title 1.6C (commencing with Section
1788) of Part 4 of Division 3 of the Civil Code).**

This is a critical interconnection: violating Rosenthal is also
a violation of CDCLA, providing additional license-revocation
exposure and DFPI enforcement.

## § 100020 — Enforcement

**(a)** The commissioner may issue orders requiring compliance.

**(b)** The commissioner may impose civil penalties up to
$2,500 per violation.

**(c)** The commissioner may seek injunctive relief.

**(d)** Violation is a misdemeanor.

## § 100025 — Private right of action?

The CDCLA does NOT expressly create a private right of action
for damages. The primary private-litigation use is:

1. **As an affirmative defense** to a collection action
   (defendant alleges the collector lacks a CDCLA license).
2. **As a UCL "unlawful" predicate** (a non-licensed collector's
   conduct is "unlawful" under § 17200, providing UCL
   restitution and injunction).
3. **As a Rosenthal violation** (collecting without license
   may be deemed a misrepresentation of legal authority under
   Rosenthal § 1788.13).

## § 100027 — Effective date / transition

Effective January 1, 2022. Persons engaged in debt collection
before that date had until January 1, 2022 to obtain a
license.

## Practical implications for consumer-debt defense

### Pre-suit verification

Before filing an answer or cross-complaint, check the DFPI
license database:

- **DFPI website**: dfpi.ca.gov
- **License search**: Public database; search by entity name or
  license number
- **What to verify**: (1) Does the plaintiff hold an active
  CDCLA license? (2) If so, what's the license number and
  status?

### Pleading the affirmative defense

In the answer:

> "AFFIRMATIVE DEFENSE [N] — Plaintiff is not licensed under
> the California Debt Collection Licensing Act (Cal. Fin. Code
> § 100002) as required to engage in debt collection in
> California, and is therefore not entitled to maintain this
> action."

### Pleading UCL cross-complaint

> "CROSS-COMPLAINT FIRST CAUSE OF ACTION — UNFAIR COMPETITION
> LAW (CAL. BUS. & PROF. CODE § 17200 et seq.) — Plaintiff /
> Cross-Defendant engaged in debt collection in California
> without first obtaining the license required by Cal. Fin.
> Code § 100002, in violation of Cal. Fin. Code § 100018 and
> the Rosenthal Act, constituting an 'unlawful' business
> practice under Cal. Bus. & Prof. Code § 17200..."

### Discovery hooks

- **RFP — license certificate**: "Produce all documents
  evidencing your CDCLA license under Cal. Fin. Code § 100002
  during the time period [start] to [present]."
- **RFA — license status**: "Admit that you did not hold an
  active CDCLA license on the date you filed the complaint in
  this action."
- **Interrogatory**: "Identify, by license number and effective
  date, the CDCLA license under which you engaged in debt
  collection in California."

## Comparison with other states' licensing regimes

| Jurisdiction | Licensure regime | Authority | Effective |
|---|---|---|---|
| California | CDCLA (DFPI) | Cal. Fin. Code §§ 100000+ | 2022-01-01 |
| Oregon | Collection Agency Registration (DCBS) | ORS 697.005-697.095 | 1971 (substantive); 1989 (modern) |
| Washington | Collection Agency License (DOL) | RCW 19.16 | 1971 |
| New York | Department of Financial Services | NYC Admin Code (city); state coverage varies | Various |
| Texas | Office of Consumer Credit Commissioner | Tex. Fin. Code Ch. 392 (some prohibitions) — but NO general licensure | n/a (no licensure) |
| Florida | Florida Department of Financial Services | Fla. Stat. ch. 559 (third-party only) | Various |

## Quick-reference

| Feature | CDCLA |
|---|---|
| Effective date | January 1, 2022 |
| Covered entities | Debt collectors AND debt buyers |
| Regulator | DFPI (Department of Financial Protection and Innovation) |
| Bond | $25,000 minimum |
| Annual renewal | Yes |
| Attorney exemption | Yes, when collecting for a client |
| Private right of action | No express — but predicate for UCL and Rosenthal |
| Civil penalties (DFPI) | Up to $2,500 per violation |
| Criminal exposure | Misdemeanor |
| License lookup | Public database at dfpi.ca.gov |

## Cross-references

- `CivCode-Rosenthal.md` — Rosenthal Act (§ 100018 incorporates
  Rosenthal compliance as CDCLA requirement)
- `CivCode-FDBPA.md` — debt-buyer-specific requirements (CDCLA
  + FDBPA stack)
- `BPC-UCL.md` — UCL "unlawful" prong borrows CDCLA violations
- `../../../ca-consumer-debt/SKILL.md` — workflow that uses
  this statute
- `../../../ca-consumer-debt/references/cdcla.md` —
  practitioner-facing guidance