California Proposed Prorater Bill No. 2425, Hearing Scheduled in California State Assembly, Banking and Finance Committee on Tuesday, May 19th at 11:30 am PST.

REGULATORY ALERT

California Proposed Prorater Bill No. 2425, Hearing Scheduled in California State Assembly, Banking and Finance Committee on Tuesday, May 19th at 11:30 am PST. 

On April 28, 2020, Felix Shipkevich and Bianca Petcu, hosted a webinar, titled: Legislative Update in The Debt Settlement Industry: Enacted and Proposed Legislation. During this webinar we advised the audience that our firm would provide an update on whether the Proposed Prorater Bill No. 2425 out of California would be scheduled for a hearing before the Banking and Finance Committee. 

Since the California State Assembly only posts their hearing schedule two weeks in advance, at the time of our webinar the hearing had not been scheduled yet. We can now confirm that the hearing on Proposed Bill No. 2425, sponsored by Assemblywoman Buffy Wicks, is scheduled to be heard in the Banking and Finance Committee on Tuesday, May 19th at 11:30 am PST. 

The California State Assembly “encourage[s] the public to provide written testimony before the hearing by visiting the committee website at https://abnk.assembly.ca.gov/ and following the web portal submission instructions. Please note that any written testimony submitted to the committee is considered public comment and may be read into the record or reprinted.” Additionally, the hearing will be live streamed on the Assembly’s website at https://www.assembly.ca.gov/todaysevents. If you are unable to view the hearing via livestream, “[i]nformation regarding a call-in option for testimony will be made available on the committee website closer to the hearing date.” 

As we discussed during our webinar, this proposed legislation is expected to affect:

  • Debt settlement companies
  • Marketing companies
  • Payment processors
  • Escrow companies, and
  • Attorneys practicing in the debt settlement space

If you believe that your business will be negatively impacted by this proposed legislation, we recommend you follow the encouragement of the California State Assembly and provide written testimony detailing your concerns to the Banking and Finance Committee before the hearing on Tuesday, May 19th. We will continue to update you on this proposed bill as it moves through the Assembly process.

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