as amended, Leno.
begin deleteFair debt collection practices. end delete
The Rosenthal Fair Debt Collection Practices Act regulates the collection of debts and defines relevant terms for the purposes of its provisions.end delete
This bill would make technical, nonsubstantive changes to the definitions in the act.end delete
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) At the time of levy pursuant to this article or
33promptly thereafter, the levying officer shall serve a copy of the
34following on the judgment debtor:
35(1) The writ of execution.
36(2) A notice of levy.
37(3) If the judgment debtor is a natural person, a copy of the form
38listing exemptions prepared by the Judicial Council pursuant to
39subdivision (c) of Section
begin delete 681.030 andend delete the list of
40exemption amounts published pursuant to subdivision
begin delete (d)end delete of
begin delete 703.150.end delete
5(4) Any affidavit of identity, as defined in Section 680.135, for
6names of the debtor listed on the writ of execution.
7(b) Service under this section shall be made personally or by
(a) The levying officer shall serve upon the
12designated employer all of the following:
13(1) The original and one copy of the earnings withholding order.
14(2) The form for the employer’s return.
15(3) The notice to employee of earnings withholding order.
20(b) At the time the levying officer makes service pursuant to
21subdivision (a), the levying officer shall provide the employer with
22a copy of the employer’s instructions referred to in Section
23706.127. The Judicial Council may adopt rules prescribing the
24circumstances when compliance with this subdivision is not
26(c) No earnings withholding order shall be served upon the
27employer after the time specified in subdivision (b) of Section
Any employer who is served with an earnings
32withholding order shall:
33(a) Deliver to the judgment debtor a copy of the earnings
begin delete order andend delete the notice to employee of earnings
begin delete withholdingend delete
38 within 10 days from the date of service. If the judgment debtor is
39no longer employed by the employer and the employer does not
40owe the employee any earnings, the employer is not required to
P11 1make such delivery. The employer is not subject to any civil
2liability for failure to comply with this subdivision. Nothing in
3this subdivision limits the power of a court to hold the employer
4in contempt of court for failure to comply with this subdivision.
5(b) Complete the employer’s return on the form provided by
6the levying officer and mail it by first-class mail, postage prepaid,
7to the levying officer within 15 days from the date of service. If
8the earnings withholding order is ineffective, the employer shall
9state in the employer’s return that the order will not be complied
10with for this reason and shall return the order to the levying officer
11with the employer’s return.
(a) If a writ of execution has been issued to the county
15where the judgment debtor’s employer is to be served and the time
16specified in subdivision (b) of Section 699.530 for levy on property
17under the writ has not expired, a judgment creditor may deliver
18an application for issuance of an earnings withholding order to a
19registered process server who may then issue an earnings
21(b) If the registered process server has issued the earnings
22withholding order, the registered process server, before serving
23the earnings withholding order, shall deposit with the levying
24officer a copy of the writ of execution, the application for issuance
25of an earnings withholding order, and a copy of the earnings
26 withholding order, and shall pay the fee provided by Section 26750
27of the Government Code.
28(c) A registered process server may serve an earnings
29withholding order on an employer whether the earnings
30withholding order was issued by a levying officer or by a registered
31process server, but no earnings withholding order may be served
32after the time specified in subdivision (b) of Section 699.530. In
33performing this function, the registered process server shall serve
34upon the designated employer all of the following:
35(1) The original and one copy of the earnings withholding order.
36(2) The form for the employer’s return.
37(3) The notice to the employee of the earnings withholding
3 (4)end delete
4 A copy of the employer’s instructions referred to in Section
5706.127, except as otherwise prescribed in rules adopted by the
7(d) Within five court days after service under this section, all
8of the following shall be filed with the levying officer:
9(1) The writ of execution, if it is not already in the hands of the
11(2) Proof of service on the employer of the papers listed in
in writing, as required by the provisions of
15(e) If the fee provided by Section 26750 of the Government
16Code has been paid, the levying officer shall perform all other
17duties required by this chapter as if the levying officer had served
18the earnings withholding order. If the registered process server
19does not comply with subdivisions (b), where applicable, and (d),
20the service of the earnings withholding order is ineffective and the
21levying officer is not required to perform any duties under the
22order and may terminate the order and may release any withheld
23earnings to the judgment debtor.
24(f) The fee for services of a registered process server under this
25section shall be allowed as a recoverable cost pursuant to Section
The “notice to employee of earnings withholding
30order” shall contain a statement that informs the employee in
31simple terms of the nature of a wage garnishment, the right to an
32exemption, the procedure for claiming an exemption, and any other
33information the Judicial Council determines would be useful to
34the employee and appropriate for inclusion in the notice, including
35all of the following:
36(a) The named employer has been ordered to withhold from the
37earnings of the judgment debtor the amounts required to be
38withheld under Section 706.050, or such other amounts as are
39specified in the earnings withholding order, and to pay these
40amounts over to the levying officer for transmittal to the person
P13 1 specified in the order in payment of the judgment described in the
3(b) The manner of computing the amounts required to be
4withheld pursuant to Section 706.050.
5(c) The judgment debtor may be able to keep more or all of the
6judgment debtor’s earnings if the judgment debtor proves that the
7additional earnings are necessary for the support of the judgment
8debtor or the judgment debtor’s family supported in whole or in
9part by the judgment debtor.
10(d) If the judgment debtor wishes a court hearing to prove that
11amounts should not be withheld from the judgment debtor’s
12earnings because they are necessary for the support of the judgment
13debtor or the judgment debtor’s family supported in whole or in
14part by the judgment debtor, the judgment debtor shall file with
15the levying officer an original and one copy of the “judgment
16debtor’s claim of exemption” and an original and one copy of the
17“judgment debtor’s financial statement.”
begin delete The notice shall also
18advise the judgment debtor that the claim of exemption form and
19the financial statement form may be obtained without charge at
20the office of the levying officer.end delete
Section 1788.2 of the Civil Code is amended to
(a) Definitions and rules of construction set forth in
28this section are applicable for the purpose of this title.
29(b) The term “debt collection” means any act or practice in
30connection with the collection of consumer debts.
31(c) The term “debt collector” means any person who, in the
32ordinary course of business, regularly, on behalf of himself or
33herself or others, engages in debt collection. The term includes
34any person who composes and sells, or offers to compose and sell,
35forms, letters, and other collection media used or intended to be
36used for debt collection, but does not include an attorney or
37counselor at law.
38(d) The term “debt” means money, property,
or their equivalent,
39which is due or owing, or alleged to be due or owing, from a natural
40person to another person.
P14 1(e) The term “consumer credit transaction” means a transaction
2between a natural person and another person in which property,
3services, or money is acquired on credit by that natural person
4from the other person primarily for personal, family, or household
6(f) The terms “consumer debt” and “consumer credit” mean
7money, property, or their equivalent, due or owing, or alleged to
8be due or owing, from a natural person by reason of a consumer
10(g) The term “person” means a natural person, partnership,
11corporation, limited liability company, trust, estate, cooperative,
12association, or other similar entity.
13(h) Except as provided in Section 1788.18, the term “debtor”
14means a natural person from whom a debt collector seeks to collect
15a consumer debt that is due and owing, or alleged to be due and
16owing, from that person.
17(i) The term “creditor” means a person who extends consumer
18credit to a debtor.
19(j) (1) The term “consumer credit report” means any written,
20oral, or other communication of any information by a consumer
21reporting agency bearing on a consumer’s creditworthiness, credit
22standing, credit capacity, character, general reputation, personal
23characteristics or mode of living which is used or expected to be
24used or collected in whole or in part for the purpose of serving as
25a factor in establishing the consumer’s eligibility for (1) credit or
26insurance to be used primarily for person, family, or household
27purposes, or (2) employment purposes, or (3) other purposes
28authorized under any applicable federal or state law or regulation.
29(2) The term “consumer credit report” does not include any of
31(A) A report containing information solely as to transactions or
32experiences between the consumer and the person making the
34(B) An authorization or approval of a specific extension of credit
35directly or indirectly by the issuer of a credit card or similar device.
36(C) A report in which a person who has been requested by a
37third party to make a specific extension of credit directly or
38indirectly to a consumer conveys his or her decision with respect
39to that request, if the third party advises the consumer of the name
40and address of the person to whom the request was made and that
P15 1person makes the disclosures to the consumer required under any
2applicable federal or state law or regulation.
3(k) The term “consumer reporting agency” means a person who,
4for monetary fees, dues, or on a cooperative nonprofit basis,
5regularly engages, in whole or in part, in the practice of assembling
6or evaluating consumer credit information or other information on
7consumers for the purpose of furnishing consumer credit reports
8to third parties, and uses any means or facility for the purpose of
9preparing or furnishing consumer credit reports.