Debt collector laws in California

The California debt collection law

State law

Rosenthal Fair Debt Collection Practices Act (plus the Debt Collection Licensing Act and the Fair Debt Buying Practices Act)

Law

Cal. Civ. Code § 1788 et seq.; Cal. Fin. Code § 100000 et seq.; Cal. Civ. Code § 1788.50 et seq.

Covers original creditors

Yes

Official text

Read the law

California is one of 22 states in our 48 state guides whose law also covers original creditors collecting their own debts.

Protections California adds to federal law

• The Rosenthal Act covers businesses that collect their own debts, not only collection agencies. A "debt collector" is anyone who regularly collects debts "on behalf of that person or others" (Cal. Civ. Code § 1788.2(c)).
• If a debt is too old to sue on, the collector's first letter after that point must say: "The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it" (Cal. Civ. Code § 1788.14(d)).
• A collector that bought or was assigned a delinquent debt must, if you ask in writing, send you free proof of the debt (balance, interest and fees, last payment date, original creditor) within 30 days, or stop collecting until it does (Cal. Civ. Code § 1788.14.5).
• Letters and digital messages from a collector must show its California license number in at least 12-point type, and callers must give the license number if you ask (Cal. Civ. Code § 1788.11(b), (f)).
• For hospital debt, the first letter must include the hospital's financial-help notice and say the collector will wait at least 180 days after the first bill before suing (Cal. Civ. Code § 1788.14(e)).

California rules on medical debt

No one may report a medical debt to a credit bureau. If someone knowingly does, the debt becomes void and can't be collected. Medical debt contracts signed on or after July 1, 2025 must include a notice about this rule (Cal. Civ. Code § 1785.27, added by SB 1061 (2024), amended by AB 1521 (2025)). For hospital debt, collectors must wait at least 180 days after the first bill before suing (Cal. Civ. Code § 1788.14(e)). Note: on October 28, 2025 the federal Consumer Financial Protection Bureau issued an interpretive rule saying that the federal Fair Credit Reporting Act generally preempts state laws that ban medical debt from credit reports (90 Fed. Reg. 48710). The state law is still on the books, but credit bureaus may argue it cannot be enforced, and courts have the final say.

Your right to sue in California

Yes. You can sue a collector for your actual damages. If the violation was willful and knowing, the court can add a penalty of $100 to $1,000. A winning consumer gets reasonable attorney's fees. You must sue within 1 year of the violation (Cal. Civ. Code § 1788.30).

Federal law (15 U.S.C. 1692k) also lets you sue within 1 year for actual damages, up to $1,000 extra and attorney's fees.

Also in California

• Debt collectors must have a DFPI license to collect from people who live in California, even if the collector is located in another state (Cal. Fin. Code § 100001(a)).

Reporting a collector in California

• California: California Department of Financial Protection and Innovation (DFPI); you can also report to the California Attorney General's Public Inquiry Unit · 1-866-275-2677
• Federal: the Consumer Financial Protection Bureau takes complaints about debt collectors at consumerfinance.gov/complaint · (855) 411-2372.
• You can also report a collector to the Federal Trade Commission at ReportFraud.ftc.gov.

Collector licensing in California

License required

Yes

Who licenses

California Department of Financial Protection and Innovation (DFPI), under the Debt Collection Licensing Act (Cal. Fin. Code § 100001)

Check a license

Official license lookup

28 of our 48 state guides, California included, require a collector license.

In nearby states

• Oregon: Yes
• Nevada: Yes
• Arizona: Yes

Steps against an abusive collector in California

1. Keep a record

   Keep letters, voicemails, emails and texts, and a log of every call.

2. Look up the company

   California requires a license, so check the collector's: Official license lookup.

3. Send a letter

   Send a letter to dispute a debt or to stop collector calls. Keep a copy and proof of mailing.

4. Complain

   Complain to California Department of Financial Protection and Innovation (DFPI); you can also report to the California Attorney General's Public Inquiry Unit. You can also complain to the CFPB at consumerfinance.gov/complaint.

5. Know your right to sue in California

   Under California law: Yes. You can sue a collector for your actual damages. If the violation was willful and knowing, the court can add a penalty of $100 to $1,000.

Questions about collector laws in California

Keep reading about California

• The full California guide
• Statute of limitations in California: 4 years
• Wage garnishment in California: up to 20%
• Sued by a debt collector in California: 30 days
• “Is my debt too old?” checker for California
• Dispute a debt and ask for proof (validation letter)
• Tell a collector to stop or limit contact
• Debt collector licensing by state
• Guide: how to dispute a debt
• Guide: how to stop collector calls