Debt collectors and debt buyers seeking to comply with the new licensing requirements issued by the California Department of Financial Protection and Innovation (DFPI) were required to submit their applications for licensing by December 31, 2021. However, unsurprisingly, the DFPI reported delays in obtaining new NMLS licenses due to “an unprecedented volume of account requests.”
In order to alleviate some concerns around the delays, on December 23, 2021, the CA DFPI issued an assurance to debt collectors and debt buyers that no action will be taken “against a debt collector solely on the basis of the temporary slowdown with NMLS.”
This no-action assurance is limited only to applicants who attempted to apply for a license by December 31, 2021. If a debt collector or debt buyer did not submit an application by December 31, 2021, the applicant cannot operate in California until the license is issued, and is subject to legal action by the CA DFPI if they continue to operate without a license.
CA DFPI will work with NMLS to verify those who attempted to apply by the December 31, 2021 deadline.
The CA DFPI announced the licensing requirement in September, 2020. Since then, there have been a number of modifications to the licensing requirements. The final requirements, and the application, can be found here.
Questions about the licensing process can reach out to CA DFPI at DCLA.email@example.com.