Debt buyers operating in California will face more restrictions. This is due to the passing of the bill SB 890, also known as the Fair Debt Buyers Practices Act by a California General Assembly committee. Last week, the bill was passed by the Assembly Judiciary Committee. Rapid Recovery Solutions, Inc. has applauded the passing of the Fair Debt Buyer Practices Act. Rapid Recovery Collection Agency is committed to recovering funds.
In a press release, John Monderine, CEO of Rapid Recovery Solution, said, “I think this is great because it will be the first step to separating debt buyers from contingency debt collectors.”
The bill on Fair Debt Buyers Practices Act is authored by Sen. Mark Leno (D-San Francisco). According to terms of the bill, debt buyers will be required to present proper documentation of their balance of debt, the date of the last payment or default, the name and address of the debtor in the original creditor’s records, their ownership of the debt, and the identity of the previous owners of the debt.
The bill on Fair Debt Buyers Practices Act was introduced in the assembly with an aim to regulate activities of a person or entity that has bought consumer debt and the circumstances in which the person may bring suit. The California Attorney General, Kamala Harris sponsored the bill when it was first presented in February 2011. Harris then said that 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.
Kamala Harris said, “Too often, a consumer can get ensnarled in a long and costly battle to prove they are not the ones responsible for debt. The Fair Debt Buyers Practices Act will put reasonable requirements on debt buyers and ensure consumers are not forced to pay the debts of others.”
Rapid Recovery Solution was recently in news when it announced that the Hamilton County School System in Tennessee is planning to use services of a collection agency to help it deal with a lunch debt situation. This step is being considered in order to help it address the problem of unpaid school lunch debts which will subsequently be collected from families that use charges and bad checks.
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Edited by Brooke Neuman