The Law Most Californians Don’t Know About Until It’s Too Late
One letter. Five calls in one day. A voicemail at midnight.
For too many debt holders, this isn’t an outlier, it’s routine. And while debt collectors count on fear and confusion to keep people silent, California law tells a different story.
It’s called the Rosenthal Fair Debt Collection Practices Act (RFDCPA). And if a debt collector is crossing the line with threats, lies, or harassment, you might be owed compensation.
New in 2025: Rosenthal Act Expands to Protect Business Owners, Too
Starting July 1, 2025, California’s Rosenthal Fair Debt Collection Practices Act will no longer apply only to consumer debts. It will also cover certain commercial debts up to $500,000 incurred by individuals for business purposes.
This matters because:
- Entrepreneurs, gig workers, and sole proprietors often take on business-related debt that was previously outside the law’s protection.
- Collectors of qualifying commercial debt will be held to the same standards as consumer debt collectors. No harassment, no threats, and no deceptive practices.
- Violations of the law may result in statutory damages, reimbursement for losses, and legal fees, just as with personal consumer debt.
What Is the Rosenthal Fair Debt Collection Practices Act?
The RFDCPA, passed in 1977 and modeled after the federal Fair Debt Collection Practices Act (FDCPA), was California’s answer to abusive and deceptive collection tactics. But where the FDCPA focuses only on third-party collectors, California went further. Note: For those feeling patriotic this 4th of July week, we’ve also released a companion version of our Fair Debt Collection Practices Act Article, written in the spirit and voice of our Founding Fathers. Read it as they might have proclaimed it.
The RFDCPA covers both third-party debt collectors and original creditors, a critical distinction that makes this law one of the strongest consumer protection statutes in the country.
Under the Rosenthal Act, it is illegal for collectors to:
- Call before 8 a.m. or after 9 p.m.
- Contact your workplace after being told not to
- Use obscene or threatening language
- Misrepresent the amount or status of your debt
- Imply arrest, garnishment, or lawsuits without actual legal action
- Contact your family, employer, or friends about your debt
- Pursue repayment on time-barred or identity theft–related debts
Violators may owe you statutory damages up to $1,000, reimbursement of actual damages, and attorney fees.
How the Law Has Expanded Since 1977
Over the decades, California legislators have expanded and updated the law to adapt to the changing nature of debt and collection tactics.
Key Milestones:
- 1999 – Allowed consumers to file class action lawsuits
- 2002 – Made any waiver of RFDCPA rights void and unenforceable
- 2019 – Included mortgage debt under the Act’s protections
- 2020 – Required debt collectors to be licensed in the state
- 2021 – Enabled victims of identity theft to dispute debts with FTC reports instead of police reports
- 2024 – Expanded to include certain commercial debts (up to $500,000 for individuals), effective July 1, 2025
These updates show California’s commitment to keeping its consumer protections responsive and relevant—not relics of the past.
Rosenthal Act Matters for Younger and First-Time Debtors
Debt collection isn’t just a stressor, it’s a power play. And it hits first-time debtors the hardest. Many young professionals, recent grads, or financially stressed Californians don’t know that collection agencies can’t just do whatever they want.
Collectors often rely on:
- Aggressive phone calls that border on harassment
- Vague threats of lawsuits or wage garnishment
- Intimidation by legal jargon and false urgency
- Silence from consumers who assume they have no rights
The RFDCPA flips that script.
It says: you do have rights. You can make them stop. And in many cases, you can make them pay.
What If You’re Already Being Harassed?
If you suspect a debt collector has violated your rights under the RFDCPA, take action now. Here’s how:
- Document everything – Keep voicemails, letters, call logs, texts, and emails.
- Request written validation of the debt from the collector.
- Tell them to stop contacting you at work or entirely. Do this in writing.
- Speak with a legal professional – Guardian Litigation Group can assess whether you have a valid claim.
- File a complaint with the California Department of Financial Protection and Innovation or the Consumer Financial Protection Bureau.
These laws are only powerful when you use them.
People Also Ask
1. What’s the difference between the FDCPA and RFDCPA?
The FDCPA is federal and covers only third-party debt collectors. The RFDCPA expands those protections to include original creditors and additional practices specific to California.
2. Can I sue a collector even if I owe the debt?
Yes. The RFDCPA protects you from illegal behavior regardless of whether the debt is valid.
3. Are robocalls from collectors allowed?
Only under strict conditions. Unsolicited robocalls may violate both federal and state laws.
4. Does this law apply to business loans?
As of July 2025, yes—commercial debts up to $500,000 incurred by individuals for business purposes will be covered.
5. How long do I have to file a claim?
You typically have one year from the date of the violation.
6. Do I need a lawyer to stop the harassment?
It helps. A legal team like Guardian Litigation Group can stop the calls, build your case, and recover damages.
Guardian Litigation Group Is Here to Help
California gave you rights for a reason. Now it’s time to use them.
If you’ve been harassed, misled, or manipulated by a debt collector, Guardian Litigation Group can help you take control. We don’t just stop the calls, we pursue justice, damages, and relief.
You don’t have to be a legal expert. You just have to say enough.
We’ll handle the rest.
