Senate BillNo. 233

Introduced by Senators Leno and Correa

February 11, 2013

An act to amend Section 1788.2 of the Civil Code, relating to debt collection.


SB 233, as introduced, Leno. Fair debt collection practices.

The Rosenthal Fair Debt Collection Practices Act regulates the collection of debts and defines relevant terms for the purposes of its provisions.

This bill would make technical, nonsubstantive changes to the definitions in the act.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1


Section 1788.2 of the Civil Code is amended to



(a) Definitions and rules of construction set forth in
4this section are applicable for the purpose of this title.

5(b) The term “debt collection” means any act or practice in
6connection with the collection of consumer debts.

7(c) The term “debt collector” means any person who, in the
8ordinary course of business, regularly, on behalf of himself or
9herself or others, engages in debt collection. The term includes
10any person who composes and sells, or offers to compose and sell,
11forms, letters, and other collection media used or intended to be
P2    1used for debt collection, but does not include an attorney or
2counselor at law.

3(d) The term “debt” means money, propertybegin insert,end insert or their equivalentbegin insert,end insert
4 which is due or owingbegin insert,end insert or alleged to be due or owingbegin insert,end insert from a natural
5person to another person.

6(e) The term “consumer credit transaction” means a transaction
7between a natural person and another person in which property,
8servicesbegin insert,end insert or money is acquired on credit by that natural person
9frombegin delete suchend deletebegin insert theend insert other person primarily for personal, family, or
10household purposes.

11(f) The terms “consumer debt” and “consumer credit” mean
12money, propertybegin insert,end insert or their equivalent, due or owingbegin insert,end insert or alleged to
13be due or owingbegin insert,end insert from a natural person by reason of a consumer
14credit transaction.

15(g) The term “person” means a natural person, partnership,
16corporation, limited liability company, trust, estate, cooperative,
17associationbegin insert,end insert or other similar entity.

18(h) Except as provided in Section 1788.18, the term “debtor”
19means a natural person from whom a debt collector seeks to collect
20a consumer debtbegin delete whichend deletebegin insert thatend insert is due and owingbegin insert,end insert or alleged to be due
21and owingbegin insert,end insert frombegin delete suchend deletebegin insert thatend insert person.

22(i) The term “creditor” means a person who extends consumer
23credit to a debtor.

24(j) begin insert(1)end insertbegin insertend insertThe term “consumer credit report” means any written,
25oralbegin insert,end insert or other communication of any information by a consumer
26reporting agency bearing on a consumer’s creditworthiness, credit
27standing, credit capacity, character, general reputation, personal
28characteristics or mode of living which is used or expected to be
29used or collected in whole or in part for the purpose of serving as
30a factor in establishing the consumer’s eligibility for (1) credit or
31insurance to be used primarily for person, family, or household
32purposes, or (2) employment purposes, or (3) other purposes
33authorized under any applicable federal or state law or regulation.
34begin delete Theend delete

35begin insert(2)end insertbegin insertend insertbegin insertThe end inserttermbegin insert “consumer credit reportend insertbegin insertend insert does not includebegin delete (a) any
36reportend delete
begin insert any of the following:end insert

37begin insert(A)end insertbegin insertend insertbegin insertA report end insertcontaining information solely as to transactions or
38experiences between the consumer and the person making the
39begin delete report; (b) any authorizationend deletebegin insert report.end insert

P3    1begin insert(B)end insertbegin insertend insertbegin insertAn authorization end insertor approval of a specific extension of credit
2directly or indirectly by the issuer of a credit card or similarbegin delete device;
3or (c) any reportend delete
begin insert device.end insert

4begin insert(C)end insertbegin insertend insertbegin insertA report end insertin which a person who has been requested by a
5third party to make a specific extension of credit directly or
6indirectly to a consumer conveys his or her decision with respect
7to that request, if the third party advises the consumer of the name
8and address of the person to whom the request was made andbegin delete suchend delete
9begin insert thatend insert person makes the disclosures to the consumer required under
10any applicable federal or state law or regulation.

11(k) The term “consumer reporting agency” meansbegin delete any person
12whichend delete
begin insert a person whoend insert, for monetary fees, dues, or on a cooperative
13nonprofit basis, regularly engages, in whole or in part, in the
14practice of assembling or evaluating consumer credit information
15or other information on consumers for the purpose of furnishing
16consumer credit reports to third parties, andbegin delete whichend delete uses any means
17or facility for the purpose of preparing or furnishing consumer
18credit reports.