AB 2420, as introduced, Jones. Debt collection: attorneys: exemption.
Existing state and federal law define and regulate the activities of debt collectors. Existing state law defines a debt collector as a person who, in the ordinary course of business, on behalf of himself or herself or others, engages in debt collection, including a person who composes and sells forms, letters, and other collection media used for debt collection. Existing law excepts an attorney or counselor at law from the definition of debt collector.
This bill would except a law firm from the definition of a debt collector. The bill would define a law firm as two or more attorneys whose activities constitute the practice of law and who share the profits, expenses, and liabilities of the firm or a law corporation which employs more than one lawyer.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1788.2 of the Civil Code is amended to
2read:
(a) Definitions and rules of construction set forth in
2this section are applicable for the purpose of this title.
3(b) The term “debt collection” means any act or practice in
4connection with the collection of consumer debts.
5(c) The term “debt collector” means any person who, in the
6ordinary course of business, regularly, on behalf of himself or
7herself or others, engages in debt collection. The term includes
8any person who composes and sells, or offers to compose and sell,
9forms, letters, and other collection media used or intended to be
10used for debt collection, but does not include an attorney or
11begin delete counselor at lawend deletebegin insert
law firm. For the purposes of this subdivision,
12“law firm” means two or more attorneys whose activities constitute
13the practice of law and who share the profits, expenses, and
14liabilities of the firm or a law corporation which employs more
15than one lawyerend insert.
16(d) The term “debt” means money, property or their equivalent
17which is due or owing or alleged to be due or owing from a natural
18person to another person.
19(e) The term “consumer credit transaction” means a transaction
20between a natural person and another person in which property,
21services or money is acquired on credit by that natural person from
22such other person primarily for personal, family, or household
23purposes.
24(f) The terms “consumer debt” and “consumer credit” mean
25money, property or their equivalent, due or owing or alleged to be
26due or owing from a natural person by reason of a consumer credit
27transaction.
28(g) The term “person” means a natural person, partnership,
29corporation, limited liability company, trust, estate, cooperative,
30association or other similar entity.
31(h) Except as provided in Section 1788.18, the term “debtor”
32means a natural person from whom a debt collector seeks to collect
33a consumer debt which is due and owing or alleged to be due and
34owing from such person.
35(i) The term “creditor” means a person who extends consumer
36credit to a debtor.
37(j) The term “consumer credit report” means any written, oral
38or other communication of any information by a consumer
39reporting agency bearing on a consumer’s creditworthiness, credit
40standing, credit capacity, character, general reputation, personal
P3 1characteristics or mode of living which is used or expected to be
2used or collected in whole or in part for the purpose of serving as
3a factor in establishing the consumer’s eligibility for (1) credit or
4insurance
to be used primarily for person, family, or household
5purposes, or (2) employment purposes, or (3) other purposes
6authorized under any applicable federal or state law or regulation.
7The term does not include (a) any report containing information
8solely as to transactions or experiences between the consumer and
9the person making the report; (b) any authorization or approval of
10a specific extension of credit directly or indirectly by the issuer of
11a credit card or similar device; or (c) any report in which a person
12who has been requested by a third party to make a specific
13extension of credit directly or indirectly to a consumer conveys
14his or her decision with respect to that request, if the third party
15advises the consumer of the name and address of the person to
16whom the request was made and such person makes the disclosures
17to the consumer required under any applicable federal or state law
18or regulation.
19(k) The term “consumer reporting agency” means any person
20which, for
monetary fees, dues, or on a cooperative nonprofit basis,
21regularly engages, in whole or in part, in the practice of assembling
22or evaluating consumer credit information or other information on
23consumers for the purpose of furnishing consumer credit reports
24to third parties, and which uses any means or facility for the
25purpose of preparing or furnishing consumer credit reports.
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