{"id":592,"date":"2021-10-29T12:14:00","date_gmt":"2021-10-29T12:14:00","guid":{"rendered":"https:\/\/sites.sandiego.edu\/cpil-blog\/?p=592"},"modified":"2021-10-29T21:40:41","modified_gmt":"2021-10-29T21:40:41","slug":"department-of-financial-protection-and-innovation-orders-sanctions-under-the-debt-collection-licensing-act","status":"publish","type":"post","link":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/29\/department-of-financial-protection-and-innovation-orders-sanctions-under-the-debt-collection-licensing-act\/","title":{"rendered":"Department of Financial Protection and Innovation Orders Sanctions Under the Debt Collection Licensing Act"},"content":{"rendered":"<h3>By Alexandra Loyo<\/h3>\n<p>On September 22, 2021, the Department of Financial Protection and Innovation (DFPI) processed a <a href=\"https:\/\/perma.cc\/P6B5-U2H4\">Desist and Refrain Order and Order Assessing Penalties<\/a> (Order) against the debt collector and debt buyer F&amp;F Management (F&amp;F). The Order marks DFPI\u2019s <a href=\"https:\/\/perma.cc\/ZU9S-HWPC\">first enforcement<\/a> of the <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billTextClient.xhtml?bill_id=201920200SB187\">SB 187 (Wieckowski) (Chapter 545, Statutes of 2019)<\/a> (Rosenthal Fair Debt Collection Practices Act) through the <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billNavClient.xhtml?bill_id=201920200SB908\">SB 908 (Wieckowski) (Chapter 163, Statutes of 2020)<\/a> (Debt Collection Licensing Act), which passed into law September 2020.<\/p>\n<p>According to the Order, between approximately May 2021 through August 2021, F&amp;F placed an automated voicemail message on multiple consumers\u2019 phone numbers, which failed to disclose F&amp;F\u2019s name, contact information, or basic information about the debt, in violation of Civil Code section 1788.11(b). F&amp;F also allegedly used randomized phone numbers to place the message. In addition, DFPI states that the automated message contained multiple false representations, including that it was the last and final notice; that it was a legal proceeding; and that if the consumer did not call back or respond within 24 hours, F&amp;F would email and fax the issue to the consumer\u2019s current employer, file a lawsuit, and submit paperwork to the consumer\u2019s county sheriff\u2019s department.<\/p>\n<p>DFPI further alleges that F&amp;F did not provide written notice, as required by law, to the consumers before contacting the credit reporting agency involved in the matter. F&amp;F\u2019s acts are considered \u201cdebt parking,\u201d which occurs when debt collectors produce negative credit information regarding a consumer to a credit bureau before they attempt to communicate with the consumer about the alleged debt. DFPI alleges that F&amp;F\u2019s actions and inactions unfairly damaged the consumers\u2019 credit and further violated state law.<\/p>\n<p>DFPI also ordered F&amp;F to pay a penalty of $375,000.00 to the Commissioner within 30 days of the date of the Order.<\/p>\n<a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-facebook nolightbox\" data-provider=\"facebook\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Facebook\" href=\"https:\/\/www.facebook.com\/CPILUSD\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px;margin-right:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"Facebook\" title=\"Follow us on Facebook\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/facebook.png\" \/><\/a><a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-twitter nolightbox\" data-provider=\"twitter\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Twitter\" href=\"https:\/\/twitter.com\/cpilusd\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"twitter\" title=\"Follow us on Twitter\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/twitter.png\" \/><\/a>","protected":false},"excerpt":{"rendered":"<p>By Alexandra Loyo On September 22, 2021, the Department of Financial Protection and Innovation (DFPI) processed a Desist and Refrain Order and Order Assessing Penalties (Order) against the debt collector and debt buyer F&amp;F Management (F&amp;F). The Order marks DFPI\u2019s <a class=\"more-link\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/29\/department-of-financial-protection-and-innovation-orders-sanctions-under-the-debt-collection-licensing-act\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1013,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132948,137883,137102],"tags":[137884,137103,137885,137107,137886,137110],"coauthors":[132864],"class_list":["post-592","post","type-post","status-publish","format-standard","hentry","category-department-of-business-oversight","category-enforcement-department-of-financial-protection-and-innovation","category-legislation-department-of-financial-protection-and-innovation","tag-debt-collection-licensing-act","tag-dfpi","tag-ff-management","tag-fair-debt-collection-practices-act","tag-sb187","tag-sb908"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Department of Financial Protection and Innovation Orders Sanctions Under the Debt Collection Licensing Act - Consumer Protection Policy Center - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/29\/department-of-financial-protection-and-innovation-orders-sanctions-under-the-debt-collection-licensing-act\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Department of Financial Protection and Innovation Orders Sanctions Under the Debt Collection Licensing Act - Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"By Alexandra Loyo On September 22, 2021, the Department of Financial Protection and Innovation (DFPI) processed a Desist and Refrain Order and Order Assessing Penalties (Order) against the debt collector and debt buyer F&amp;F Management (F&amp;F). 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