SB 1286 (Min D) Rosenthal Fair Debt Collection Practices Act: covered debt: commercial debts.

Current Text: Chaptered: 9/24/2024 

Last Amend: 8/23/2024

Status: 9/24/2024-Chaptered by Secretary of State - Chapter 522, Statutes of 2024

Location: 9/24/2024-S. CHAPTERED

Summary: The Rosenthal Fair Debt Collection Practices Act prohibits debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and requires debtors to act fairly in entering into and honoring those debts. Current law defines “debt collection” as any act or practice in connection with the collection of consumer debts. Current law defines “consumer debt” for these purposes to mean money, property, or their equivalent, due or owing, or alleged to be due or owing, from a natural person by reason of a consumer credit transaction. Current law also defines “consumer debt” to include a mortgage debt. This bill would recast those provisions to expand the scope of those provisions to additionally prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of covered commercial debts, as defined, entered into, renewed, sold, or assigned on or after July 1, 2025, and to make conforming changes.