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Fair Debt Settlement Practices Act.

Passed first chamber: it can still change before the session ends.

CA AB 1166 · Assembly Bill · 2025–2026

Draft a letter
Stage
Passed first chamber
Started in
Assembly
Sponsor
1
Latest action
Aug 29, 2025

What it does

Existing law, the Fair Debt Settlement Practices Act, prohibits a debt settlement provider from engaging in false, deceptive, or misleading acts or practices, as specified, when providing debt settlement services. Existing law requires a debt settlement provider to provide a consumer with certain disclosures along with an unsigned copy of the proposed written contract between the debt settlement provider and the consumer and prohibits certain unfair, abusive, or deceptive practices in connection with payment processor activities. Existing law authorizes a consumer to terminate a contract for debt settlement services at any time without a fee or penalty of any sort by notifying the debt…

Read the full text

Where it stands

  1. Introduced (Done)

  2. Committee (Done)

  3. Floor (Current step)

    Passed first chamber · Aug 29, 2025

  4. Law (Not started)

What moved

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Who is involved

Sponsors

The lawmakers who put their names on it, lead sponsors first.

Where it goes next

While a bill can still move, the questions are about people and money in California.

Work with this bill

Fair Debt Settlement Practices Act. | 52