California regulator reminds debt collectors of rental protections

State Issues Covid-19 California Debt Collection Mortgages

On April 9, the California Department of Financial Protection and Innovation issued a bulletin reminding debt collectors of protections associated with “Covid-19 rental debt,” which includes unpaid rent or other unpaid financial obligation of a tenant that came due between March 1, 2020 and June 30, 2021 (see previous coverage here). Starting July 1, creditors are prohibited from charging or attempting to collect late fees for Covid-19 rental debt if the renter has submitted the requisite declaration of financial distress, among other restrictions. Actions to recover Covid-19 rental debt cannot be commenced before August 1, 2021, and any action to recover such debt that was pending on January 29, 2021, is stayed until August 1.