California Senators approved a bill Tuesday that would place more restrictions on debt buyers operating in the state. The primary impact of the bill would be to require more documentation from buyers during the debt collection process.
The bill – SB 890, sponsored by Sen. Mark Leno (D-San Francisco) – was passed on a party line vote with a tally of 22 to 14. The legislation now goes to the California General Assembly for consideration.
According to California Attorney General Kamala Harris – who praised the passage Wednesday – the bill would prohibit debt buyers from obtaining a judgment in a debt collection lawsuit unless the debt buyer can document their ownership of the debt, the balance of the debt, the date of the default or last payment, the identity of prior owners of the debt and the name and address of the debtor in the original creditor’s records.
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