California Senate Looks to Better Regulate Debt Collection

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The California State Senate recently approved tougher regulations for debt collection agencies. The new regulations would require debt collectors to provide proper documentation to collect debts. According to The Los Angeles Times, the proposition, known as the Fair Debt Buyers Practices Act, was passed in the Senate by a vote of 22 to 14 and now must be approved by the Assembly and Governor Jerry Brown.

While other provisions have been set up against unfair debt collection practices, including the Fair Debt Collection Practices Act, California Senators believe additional protection is needed. The bill would require companies that buy consumer debt from other agencies to provide more documentation than was previously required. The documentation would show that the agency has the right to collect and that the amount they are seeking from the debtor is correct. Of those supporting the legislation, Senator Lou Correa from Anaheim was unfairly targeted for a $4,000 debt that someone with a similar name actually owed. The incident led to a court order for wage garnishment of the Senator.

Opponents of the bill say it would create an unfair burden on agencies and make the collection of legitimate debts too difficult.

Being targeted for debts that you do not owe, or being subjected to intimidation or pressure by collection agencies, is both unfair and illegal under federal and state law. Riverside unfair debt collection lawyer Howard D. Silver can protect you from such practices and halt agencies from pursuing you in such a manner. Call the Law Offices of Howard D. Silver today for a free consultation about your case at (866) 49-LEMON.

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