BILL NUMBER: AB 2420	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 19, 2016

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


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 1788.2 of the Civil Code is amended to read:
   1788.2.  (a) Definitions and rules of construction set forth in
this section are applicable for the purpose of this title.
   (b) The term "debt collection" means any act or practice in
connection with the collection of consumer debts.
   (c) The term "debt collector" means any person who, in the
ordinary course of business, regularly, on behalf of himself or
herself or others, engages in debt collection. The term includes any
person who composes and sells, or offers to compose and sell, forms,
letters, and other collection media used or intended to be used for
debt collection, but does not include an attorney or 
counselor at law   law firm. For the purposes of this
subdivision, "law firm" means 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  .
   (d) The term "debt" means money, property or their equivalent
which is due or owing or alleged to be due or owing from a natural
person to another person.
   (e) The term "consumer credit transaction" means a transaction
between a natural person and another person in which property,
services or money is acquired on credit by that natural person from
such other person primarily for personal, family, or household
purposes.
   (f) The terms "consumer debt" and "consumer credit" mean money,
property or their equivalent, due or owing or alleged to be due or
owing from a natural person by reason of a consumer credit
transaction.
   (g) The term "person" means a natural person, partnership,
corporation, limited liability company, trust, estate, cooperative,
association or other similar entity.
   (h) Except as provided in Section 1788.18, the term "debtor" means
a natural person from whom a debt collector seeks to collect a
consumer debt which is due and owing or alleged to be due and owing
from such person.
   (i) The term "creditor" means a person who extends consumer credit
to a debtor.
   (j) The term "consumer credit report" means any written, oral or
other communication of any information by a consumer reporting agency
bearing on a consumer's creditworthiness, credit standing, credit
capacity, character, general reputation, personal characteristics or
mode of living which is used or expected to be used or collected in
whole or in part for the purpose of serving as a factor in
establishing the consumer's eligibility for (1) credit or insurance
to be used primarily for person, family, or household purposes, or
(2) employment purposes, or (3) other purposes authorized under any
applicable federal or state law or regulation. The term does not
include (a) any report containing information solely as to
transactions or experiences between the consumer and the person
making the report; (b) any authorization or approval of a specific
extension of credit directly or indirectly by the issuer of a credit
card or similar device; or (c) any report in which a person who has
been requested by a third party to make a specific extension of
credit directly or indirectly to a consumer conveys his or her
decision with respect to that request, if the third party advises the
consumer of the name and address of the person to whom the request
was made and such person makes the disclosures to the consumer
required under any applicable federal or state law or regulation.
   (k) The term "consumer reporting agency" means any person which,
for monetary fees, dues, or on a cooperative nonprofit basis,
regularly engages, in whole or in part, in the practice of assembling
or evaluating consumer credit information or other information on
consumers for the purpose of furnishing consumer credit reports to
third parties, and which uses any means or facility for the purpose
of preparing or furnishing consumer credit reports.