Rosenthal Act Used To Sue Businesses Including Self-Storage

According to an email from the California Self Storage Association (CSSA), The Rosenthal Fair Debt Collection Practices Act (known as the Rosenthal Act), which was passed in 2020, is being used by some attorneys to file lawsuits against businesses that are non-compliant.

The association reports that several lawsuits have been filed against California and Florida self-storage businesses regarding the violation of the Rosenthal Act.

The Rosenthal Fair Debt Collection Practices Act is a California law that governs debt collection agency practices for personal debts, including how and when a debt collector may contact an individual about money allegedly owed. The primary difference between the Rosenthal Act and the federal Fair Debt Collection Practices Act is that the Rosenthal Act is broader and applies to original creditors in addition to third-party collectors. The Rosenthal Act simplifies the FDCPA and applies to any person who, as part of their ordinary course of business, engages in debt collection, which it broadly defines as “any practice or act in connection with the collection of consumer debts.” The Rosenthal Act also covers those who write or sell forms, letters, and other collection media intended to be used for debt collection. Attorneys must also comply.

Subject to limited exceptions, debt collectors, which may include self-storage managers and employees, in California must comply with both the Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act.

The Rosenthal Act includes several requirements such as:

• Specific hours and methods for contacting debtor
• Language restrictions when attempting to collect a debt
• Avoid misrepresentation
• Forbidden to communicate with debtor’s employer or family
• Non-disclosure (confidential) of debtor and debt
• Notification of debt discharge to due bankruptcy or other issues

CSSA Recommendations

• Review your policy and practices for contacting past-due accounts.
• Owners should immediately limit all electronic communications (text, email, robo-calls, and/or phone calls) to reasonable business hours (i.e., 8 a.m. to 8 p.m. daily).
• Consult your attorney for further modifications to your debt-collection practices to avoid lawsuits.