California has robust consumer protection laws, including the Rosenthal Fair Debt Collection Practices Act, which supplements the federal FDCPA. The state law expands the definition of debt collectors to include original creditors, not just third-party agencies.
California's statute of limitations for debt collection is four years for open-ended accounts and written contracts. This limitation period dictates how long a creditor can legally sue for unpaid debts.
California law limits the actions of debt collectors, including when and how often they can contact debtors. The RFDCPA requires specific notices and prohibits abusive, deceptive, and unfair debt collection practices.
California offers various consumer credit counseling and debt management programs, often run by non-profit organizations. These programs help residents manage their debt through consolidation and negotiated settlements.
Californians should be aware of the potential credit impacts of engaging in debt settlement or consolidation programs. They should also thoroughly research debt relief agencies and understand the terms of any agreement.
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