Consumer Protection Under the Rosenthal Act
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Rosenthal Act
Much like the Unfair and Deceptive Acts of Practices (UDAP) law, the Rosenthal Fair Debt Collection Act, or simply the Rosenthal Act, is designed to protect consumers from the aggressive and illegal tactics employed by debt collectors when seeking payment on a debt.
California consumers are lucky to have the benefit of numerous consumer protection laws, both state and federal. No type of harassment is acceptable and many of the contacts from creditors or third-party collection agencies are illegal. Take action to stop the harassment with the help of our legal team at Chang & Diamond, APC.
We have years of experience helping clients protect themselves under the laws that have been established to limit the types and extent to which creditors and collection agencies can seek repayment on a debt. Our firm strives to help clients deal with creditors and regain control of their finances by filing for bankruptcy, sending cease and desist letters, reorganizing debts and even litigating the most egregious violations of the Rosenthal Act.
Highlights of the Rosenthal Act
Not only does this act protect you against unfair practices by a collection agency, the Rosenthal Act protects consumers against the original creditor (such as the credit card company). Also, almost anything that violates the federal Fair Debt Collection Act also violates the Rosenthal Act.
This means double protection for California consumers. The protection of the Rosenthal Act also extends to repossession agencies. There may be damages that the creditor must pay for violating the Rosethal Act which can help you pay for your bankruptcy.
Regulation of Credit Collecting Activities
Should a creditor violate the Rosenthal Act ”willfully and knowingly”, they are to pay a statutory penalty ranging from $100 to $1000. If an unintentional violation has taken place, a creditor has the right and obligation to inform the debtor and try to adjust their activities in order to cure the violation within 15 days of discovering it.
If you are being harassed by creditors and have already filed for bankruptcy, you have options. To discuss how to stop creditor harassment under the Rosenthal Act, contact a lawyer at Chang & Diamond, APC, today and schedule a free initial consultation. Spanish speaking staff members are available for translation assistance.
Frequently Asked Questions: The Rosenthal Act
Who is considered a “debt collector” under the Rosenthal Act?
Unlike federal law, the Rosenthal Act defines “debt collector” to include original creditors, such as your bank or credit card company, in addition to third-party collection agencies. This means businesses trying to collect their own debts in California must follow the same strict conduct rules as professional repo agents or collection firms.
What types of harassment are prohibited by this law?
The Act forbids creditors from making continuous, repeated phone calls intended to annoy or harass you, and it prohibits the use of deceptive or unfair tactics. It specifically incorporates the protections of the federal Fair Debt Collection Practices Act (FDCPA), applying those standards to nearly all debt collection activities within the state.
What are the penalties for a “willful” violation by a creditor?
If a creditor knowingly and willfully violates the Rosenthal Act, they can be ordered to pay a statutory penalty ranging from $100 to $1,000 per violation. These damages are in addition to any actual financial losses you may have suffered due to the illegal collection tactics.
Can a creditor “cure” an unintentional violation of the Act?
Yes, if a violation was unintentional, a creditor has 15 days from the date of discovery to notify the debtor and adjust their practices to fix the error. If they successfully cure the violation within this window and provide the required notice, they may be shielded from certain penalties.
How does filing for bankruptcy impact Rosenthal Act protections?
Filing for bankruptcy triggers an automatic stay that legally prevents most creditors from continuing any collection efforts, including phone calls or lawsuits. If a creditor ignores the stay and continues to harass you, their actions may constitute an “egregious violation” that can be litigated under the Rosenthal Act.
