California Passes Law Extending
Debt Collection Rules: Update
Ken Greene, Leasing News Editor, Emeritus

The new year brought more distressing news from the Golden State. If you are in the commercial finance space, and you want to collect that gold in California, you will soon have to heed all the rules that, until now, only applied to consumer debt collectors.

The good news is that California Financing Law (“CFL”) licensees will be exempt from the amended law.

Beginning July 1, 2025, commercial loans of $500,000 or less will be subject to the debt collection protections of the Rosenthal Fair Debt Collection Practices Act (“RFDCPA”), unless the creditor is licensed under the CFL. What is potentially more troublesome is that the statute will apply not only to debt collectors, but creditors! That means that your in-house collection department will have to heed all the prohibitions and restrictions of the RFDCPA.

The rules are fairly straightforward and apply to debt collectors and unlicensed creditors attempting to collect on their own paper. There are many, including:

1. It will be a crime for collection notices to simulate legal or judicial process or give the appearance of being authorized by a governmental agency or attorney (if it is not).
2. If a borrower claims identity theft, collection efforts must cease once the borrower provides certain information which confirms the identity theft claim.
3. The use, or threat of use, of physical force or violence is prohibited, as is telling a borrower that failure to pay a debt will result in an accusation that the borrower has committed a crime.
4. Debt collectors/creditors can only initiate judicial proceedings in the county in which a non-natural person is located.
5. There are many restrictions as to the timing of collection notices and calls.

There is a plethora of other rules, but you get the picture.

There are other important issues, i.e.:

1. Are your attorneys bound by these rules? In my opinion, the answer is yes. At least I intend to comply.
2. How liable is a creditor for its independent contractors who perform collection activities?
3. Can you send emails at night? What if they are computer generated?
4. Some of the terms of the law i.e. communicating with “such frequency as to be unreasonable” are vague, subjective and rich fodder for consumer plaintiff’s lawsuits. Lender beware!
5. The new law will prohibit the “false representation that a legal proceeding has been or is about to be instituted” if payment is not made. Gone are the days of sending that threat to sue if you don’t really mean it. So, if you make that threat, are you compelled to sue? I am sure the consumer lawyers will claim foul!

One good thing about the expanded statute is that there is no licensing requirement for commercial debt collectors/creditors (yet!).

There is much more, but it is, as they say, beyond the scope of this article. My best advice is to have an attorney prepare a best practices guide to help you navigate this minefield. That is exactly what I am doing for my clients. To reiterate, CFL licensees will be exempt from the RFDCPA.

I am publishing a best practice guide to help creditors through the new law. If you are interested in it, please contact me at ken@kengreenelaw.com.

Ken Greene   
Law Office of Kenneth Charles Greene
5743 Corsa Avenue, Suite 208
Westlake Village, California 91362
Tel: 818.575.9095
Fax: 805.435.7464
ken@kengreenelaw.com
www.kengreenelaw.com

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New Hires/Promotions in the Leasing Business
and Related Industries

Joyce Almazan was promoted to Junior Underwriter, BriteCap, Las Vegas, Nevada. She is located in Los Angeles, working remote. She joined BriteCap, October, 2014, Underwriting, promoted Loan Servicing, Merchant Card Processing, Merchant Services.
https://www.linkedin.com/in/joyce-almazan-8b7200264

Jose Baylon was promoted to Junior Underwriter at BriteCap Financial, Las Vegas, Nevada, where he is located.  He joined BriteCap July, 2022, Loan Processor,  promoted Senior Loan Processor (June, 2024 - March, 2025).
https://www.linkedin.com/in/jose-baylon-91963b221/

Amy Crowe was hired as Funding Specialist, AP Equipment Financing, Bend, Oregon, where she is located. Previously, she was Administrative Assistant, FMI Equipment (September, 2024 - April, 2025); Collections Representative, AP Equipment Financing (October, 2020 - September, 2024).
https://www.linkedin.com/in/amy-crowe-890821168/

Susan Kalinay was hired as EFG Senior Sales Support Representative, First Commonwealth Bank, Indiana, Pennsylvania.  She is located in Luzerne, Pennsylvania. Previously, she was at 1st Equipment Finance, Inc., starting September, 2021, Equipment Sales Coordinator, promoted November, 2022,  Finance Operations Coordinator, promoted Equipment Finance Inside Sales Associate (January, 2024 - April, 2025). Sales Assistant, F.N.B. Corporation, November, 2016 - September, 2021).
https://www.linkedin.com/in/susan-kalinay-mba-200470164/

Jenaleigh (Jen) Lathrop, CLFP, was hired as Salesforce Center of Excellence Strategist, Arvest Bank, Nixa, Missouri,  where she is located. She joined Arvest Equipment Finance, working remote, starting April, 2021 - December, 2022), Credit Analyst for Arvest Equipment Finance. Full Bio:
https://www.linkedin.com/in/jenaleigh-lathrop-clfp/details/experience/
https://www.linkedin.com/in/jenaleigh-lathrop-clfp/

Devan Phillips was hired as Account Executive, Direct Credit Funding, Ogden, Utah. He works remote from Mapleton, Utah. Previously, he was Sales Development Representative, Voze (August, 2024 - April, 2025); Business Development Officer, VFI Corporate Finance (July, 2023 - August, 2024); Senior Sales Agent, Basic Research. (June, 2012 - July, 2023), Sales (June, 2012 - July, 2023). Full Bio:
https://www.linkedin.com/in/devan-phillips-7565b7a3/details/experience
https://www.linkedin.com/in/devan-phillips-7565b7a3

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70% of Small Businesses to Move in the Next 2 Years
by Bob Coleman, Coleman Report

The statistics of not moving in the next 2 years comes from the Federal Reserve Bank’s  2025 small business credit survey.

Compared to firms that relocated in the past 5 years, small businesses planning to move within the next 2 years were more likely to cite expansion or the need for more amenities as the reason for their planned moves.

The top survey results are:

1. More suitable space / amenities (53%)
(Notably, that is up from 38% that moved in the last five years.)
2. Expansion (52%)
3. Cost savings (27%)
4. Expiration of lease (27%)

Some other fascinating statistics for SBA lenders:

– 59% of small businesses rent their facility, while only 17% own their facility.
– 17% of all small businesses are home-based.
– In the last 5 years, 75% of all businesses moved.
– 3% are virtual.
– 1% are based out of vehicles.

bob@colemanreport.com

Balboa Capital Available Position
Program Manager II- Equipment Broker Sales

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The True Value of Originators in a Recession
By Scott Wheeler, CLFP

The top performers aren’t retreating. They’re leaning in, moving forward with clarity and confidence, offering stability and solutions when others are pulling back.

Now is the time to emphasize the true value an originator brings to the table. Vendors, end-users, credit departments, and funders are all watching closely, testing whether originators can truly deliver on what they promise.

Less experienced originators are tempted to treat every transaction the same, often forcing deals that don’t align with their strengths or market realities. In contrast, top originators are highly selective. They don’t chase transactions that come with unmitigated risk. Instead, they seek out deals that fit their expertise and value proposition. Top originators focus on sectors, equipment types, and niches they know best. They don’t try to be all things to all people—they go deep, not wide.

Top originators go deep to:

• Understand the markets they serve inside and out.
• Assess each transaction’s unique needs and nuances.
• Identify emerging trends that could shape future demand.
• Confirm funding capabilities in real time with current market dynamics.
• Position themselves as trusted financial advisors—not commodity-driven salespeople.
• Outperform their competition and gain ground while others fall behind.

In 2025, success won’t be about waiting for the market to improve—it will be about creating and shaping an originator's own success.

Scott A. Wheeler, CLFP
Wheeler Business Consulting
1314 Marquis Ct.
Fallston, Maryland 21047
Phone: 410 877 0428
Fax: 410 877 8161

Email: scott@wheelerbusinessconsulting.com
Web: www.wheelerbusinessconsulting.com 
Wheeler Business Consulting is working with individual originators and sales teams throughout the industry to ensure that they are well positioned in the market, capturing their fair share of business, and outperforming the competition. To schedule a one-on-one meeting contact Scott Wheeler at: scott@wheelerbusinessconsulting.com

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How Reliant Are Foreign Automakers on U.S. Buyers?
VisualCapitalist

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The U.S. Relies Heavily on Rare Earth
Imports from China

Beijing has introduced new controls on the export of several critical minerals and magnets amid an escalating trade war with Washington. These materials are vital for the production of a range of technologies, from cars to missiles.

According to the New York Times, exporters must apply to the Ministry of Commerce for special export licenses, with the process anticipated to be lengthy, risking stockpiles running low.

Data from the United States Geological Survey (USGS) shows that China is the world leader for rare earth reserves. With 44 Mt of known reserves of rare earth oxides (REO) in 2024, it is home to nearly half of the world’s total known reserves (90+ Mt). By contrast, the U.S. has just 1.9 million tons of rare earths and is highly dependent on China for imports of these elements. These figures reflect the reserves that could be economically extracted or recovered as of 2024.

Global mine production increased from 376,000 tons of REO equivalent in 2023 to 390,000 tons of REO equivalent in 2024, largely due to increased mining and processing in China, Nigeria and Thailand. This data includes lanthanides and yttrium but excludes most scandium.

Source: Statista

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CLFP Foundation First Quarter 2025 Circular
Released this Week

02 | A Message From the CLFP President
03 | Spotlight: Matthew Kleberger, CLFP
Trans Lease, Inc.
05 | Get to know the First CLFP in 2025
07 | Why I Became a CLFP
08 | New CLFPS & Associates
10 | Industry News
12 | Thank You to Our Supporting Associations
13 | Thank You to Our Corporate Partners
14 | Thank You to Our Personal Partners

https://clfpfoundation.org/wp-content/uploads/2025/04/March-2025-CLFP-Circular_040925.pdf

News Briefs

China halts
    Boeing jet orders
https://www.foxbusiness.com/markets/china-halts-boeing-jet-orders

Can Trump strip Harvard
    of its tax-exempt status?
https://www.bostonglobe.com/2025/04/15/business/trump-harvard-tax-exemption/

United Airlines to slash flights by 4% this summer due
    to softer demand, recession fears: ‘Impossible to predict’
https://nypost.com/2025/04/15/business/united-airlines-to-slash-flights-by-4-this-summer-due-to-less-demand/

Elliott Investment Management targets
    Hewlett Packard by reportedly building $1.5B stake
https://nypost.com/2025/04/15/business/activist-investor-targets-hewlett-packard-by-reportedly-building-1-5b-stake/

Trump signs executive action
    to lower drug prices
https://www.npr.org/sections/shots-health-news/2025/04/15/nx-s1-5366067/trump-medicare-lower-drug-prices

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Manufacturers struggle with uncertainty,
chaos in Trump tariffs
https://www.washingtonpost.com/business/2025/04/13/trump-tariffs-us-manufacturing-impacts/

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Sports Briefs

Reports: Derek Carr has shoulder injury,
2025 status iffy
https://www.linkedin.com/in/jenny-dubinsky-cpa-6146423b/details/experience/

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California News Briefs

California’s demographic earthquake: Asian
   immigrants rise, Latinos decline, state transformed
https://www.reddit.com/r/LosAngeles/comments/1jz7dde/californias_demographic_shift_asian_immigrants/?rdt=45888

Santa Clara approves another 1,000+ housing project
https://sanjosespotlight.com/santa-clara-approves-another-1000-housing-project

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Gimme that Wine

 

http://www.youtube.com/watch?v=EJnQoi8DSE8

It’s like winning the lottery.’ Tiny Napa Valley winery
    wins big at North Coast Wine Challenge
https://www.pressdemocrat.com/article/lifestyle/its-like-winning-the-lottery-tiny-napa-valley-winery-wins-big-at-north/

Napa Valley College Nears Completion of Wine Spectator
    Wine Education Center
https://www.winespectator.com/articles/wine-spectator-wine-education-center-at-napa-valley-college-nears-completion

Francis Ford Coppola Winery Expands
     "Diamond Collection" Portfolio
https://www.winebusiness.com/news/article/300843

A Taste of Napa's Best: Winery and Chef Lineup for the
    2025 Napa Valley Barrel Auction Announced
https://www.winebusiness.com/news/article/300847

Trade & Tariffs | The US has stopped orders
   for Portuguese wines -- Portugal
https://portuguese-american-journal.com/trade-tariffs-the-us-has-stopped-orders-for-portuguese-wines-portugal/

Sonoma-Cutrer Releases First
   Sonoma County Sauvignon Blanc
https://www.winebusiness.com/news/article/300800