On October 4, 2021, Governor Gavin Newsom signed AB 1405, the California Fair Debt Settlement Practices Act, into law. The law sets requirements and prohibitions for debt settlement companies and payment processors (companies that manage the accounts used to facilitate debt settlements).
This law, which goes into effect on January 1, 2022:
So, consumers can sue debt settlement companies and payment processors if they don't comply with the law.
Effective date: January 1, 2022