In a continuation of a yearlong crackdown on unscrupulous debt collectors, the California Department of Financial Protection and Innovation (DFPI) announced today that it has issued enforcement actions against four entities for unlicensed debt collection activity under the Debt Collection Licensing Act (DCLA) and unfair, deceptive, or abusive acts or practices (UDAAP) in violation of the California Consumer Financial Protection Law (CCFPL) and related federal laws and regulations. The DFPI issued actions against Centennial Services, Bellgate Associates, Moss Westinghouse and Associates, and Prodigy Portfolio Management, ordering each entity to desist and refrain from engaging in unlawful and deceptive practices, such as:
- Failing to identify themselves as debt collectors.
- Making false and misleading statements about payment requirements.
- Threatening unlawful action because of nonpayment of a debt.
- Contacting the consumer at a prohibited time of day.
- Making false claims of pending lawsuits or legal process.
- Making false claims about the character, amount, or legal status of the debt.
- Failing to provide a “validation notice” as required by federal law.
- Threatening to sue on time-barred debt in violation of federal regulations.
The DFPI ordered the subjects to pay penalties for each of the actions described above, totaling $87,500, and to desist and refrain from violating consumer protection laws. These actions follow previous debt collection action sweeps issued on October 11, 2022, January 30, 2023, and June 5, 2023 .