Collecting debt in California: licensing, bonds and statutes of limitations.

Amount field is the statutory minimum. § 100019(e): minimum $25,000 surety bond payable to the commissioner, issued by an insurer authorized in California; § 100019(e)(2): 'The commissioner may require a higher bond amount for a licensee based on the number of affiliates under the license and the dollar amount of collecting consumer debt by that licensee.' A $25,000 refundable deposit may substitute temporarily while a replacement bond is obtained after a claim (§ 100019(e)(1)). 10 CCR 1850.50(c): 'For purposes of obtaining a license, an applicant shall initially file a surety bond of at least $25,000' on the NMLS electronic surety bond form 'SURETY BOND, DEBT COLLECTION LICENSING ACT LICENSEE BOND' (ESB Form Version 1 Effective 07/01/2021); cancellation requires 60 calendar days' notice to the Commissioner. Regulation operative 12-22-2021 (Register 2021, No. 52).

DFPI FAQ: 'All applications, amendments, surety bonds, notices, related filings, supporting documents, renewals, authorizations, assessments, and fees required to be filed with the Commissioner will need to be filed electronically with and transmitted through NMLS'; paper applications are not accepted. Statute defines NMLS (§ 100002(o)) and authorizes electronic surety bonds and assessment payment through NMLS (§§ 100019(e), 100020(e)). NMLS license type: CA-DFPI Debt Collection License. The NMLS state checklist PDF could not be retrieved by either pass.

$350 application fee plus $150 investigation fee per applicant, nonrefundable. § 100007(b)(1): 'An application fee, of three hundred fifty dollars ($350), and an investigation fee, the amount of which shall be determined by the department, to cover any costs incurred in processing an application, including a fingerprint processing and criminal history record check under Section 100009.' 10 CCR 1850.7(b): 'An application fee of $350 and an investigation fee of $150 per applicant shall be paid through NMLS.' DFPI FAQ: 'There is an application fee of $350 and an investigation fee of $150 per applicant.' Affiliates may share a single license and a single $350 application fee, but each affiliate pays the $150 investigation fee and files its own Form MU1. NMLS processing, credit-report and fingerprint/CA DOJ fees are extra and paid to NMLS (amounts not recorded; NMLS checklist not retrievable). Once licensed as of July 1 the licensee also owes the annual assessment.

annual, renews January 1 (annual assessment payment deadline; commissioner notifies licensees by September 30; no fixed license expiration date in the statute)

§ 100001(a): 'A separate license is not required for each individual branch office.' DFPI FAQ: branch offices must be registered in NMLS (Form MU3); 'Fingerprinting is still suspended for Branch Managers.' § 100018(b)(3): notice of new or changed branch locations within 30 days. Affiliated companies may operate under a single license (§ 100003(b)(2); 10 CCR 1850.7(b)). Fictitious business names must be filed in NMLS with county-stamped FBN statements and approved before use (10 CCR 1850.7(a)(1)). Periodic examination costs are billed at DFPI's estimated average hourly cost (§ 100023). DFPI fee index lists '$150 renewal' against 10 CCR 1850.7, which mislabels the $150 investigation fee; the regulation text controls.

NMLS Company Account and Form MU1 application, with Form MU2 for control persons (10 CCR 1850.6, 1850.7); fingerprints and criminal history background check for every MU2 filer (§§ 100008, 100009; 10 CCR 1850.9); credit reports via NMLS (10 CCR 1850.6(b)(3)); sample initial validation letter under 15 U.S.C. 1692g to be used with California consumers, filed with the application (§ 100007(c)); California registered agent for service of process and appointment of the Commissioner as agent (10 CCR 1850.7(a)(2), 1850.8); organizational chart of direct and indirect owners and affiliates (10 CCR 1850.7(a)(5)); fictitious business name statements for each trade name, no collection under a DBA until approved (10 CCR 1850.7(a)(1)); written policies and procedures to promote compliance; submit to periodic examination (§ 100019(a), (d)); annual report under oath by March 15 covering California debtor accounts and net proceeds, filed via the DFPI Self-Service Portal; reports are public (§ 100021; 10 CCR 1850.70); annual pro rata assessment, minimum $250, paid through NMLS by January 1 (§ 100020); notify the Commissioner within 30 days of changes to application information; 10 days' prior notice of a principal office move (§ 100018); designated email address in the DFPI Self-Service Portal (DFPI FAQ); license number must appear in communications with debtors (Civ. Code § 1788.11 per DFPI FAQ)