On February 27, the California DFPI entered a consent order resolving allegations that a debt collection firm violated multiple state and federal debt collection laws while operating without a license in the state. The DFPI alleged that the firm engaged in unlicensed debt collection in violation of the state’s Debt Collection Licensing Act, deceptive and misleading practices in violation of the California Consumer Financial Protection Law, false and misleading representations in violation of the Rosenthal Fair Debt Collection Practices Act, and prohibited conduct in violation of the FDCPA and its implementing regulation (Regulation F). According to the order, the DFPI claimed the firm used undisclosed trade names, misrepresented debt assignments, threatened legal action that was never taken, and misrepresented its representatives’ roles as attorneys or arbitrators.

The DFPI further alleged that the firm failed to disclose at least five past court findings of violations of financial services statutes and six pending civil actions in its licensing application. The order stated that the firm also did not address significant licensing deficiencies, including missing formation documents, trade name filings, and explanations for derogatory credit accounts linked to its owner. In February 2025, the DFPI issued a subpoena for records related to California consumers, which the agency claimed were not produced as required. Under the terms of the consent order, which the firm entered voluntarily, it must cease unlawful debt collection activities, pay a $35,000 penalty, and accept denial of its application, with a three-year ban on reapplying for a California debt collection license.