California · 2025–26 Regular Session · Assembly Bill
AB 1166: Fair Debt Settlement Practices Act.
Passed one chamber Official data
- Introduced
- In committee
- Passed one chamber
- Passed both chambers
- Enacted
Last official action: ·Record last updated:
Plain-language summary
AB 1166 is a assembly bill introduced in the California Assembly on February 21, 2025. According to its official title, it concerns: Fair Debt Settlement Practices Act. Primary sponsor: Avelino Valencia (D). Most recent recorded action (August 29, 2025): In committee: Held under submission.
Generated automatically from the official title, sponsor list, and status record only. It does not characterize the bill’s purpose or effects. How summaries are written
Official summary
Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.
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 settlement provider, at which time the debt settlement provider is required to, among other things, provide, within 3 business days, a detailed accounting of any amounts received or expected to be received by the debt settlement provider from the consumer’s settlement account after the debt settlement provider received effective notice of request for cancellation. Existing law authorizes a consumer to bring a civil action for violation of these provisions.
This bill would expand the protections for consumers described above to include commercial debtors, as defined, and make other, nonsubstantive and related changes.
Sponsors
Sponsors by party (alphabetical): Democratic 1
| Name | Role | Party | Chamber | District |
|---|---|---|---|---|
| Avelino Valencia | Primary sponsor | Democratic | Assembly | 68 |
“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.
Recent official actions
- In committee: Held under submission.
- In committee: Referred to suspense file.
- From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 1.) (July 15). Re-referred to Com. on APPR.
- Read second time and amended. Re-referred to Com. on JUD.
- From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (July 2).
- In committee: Hearing postponed by committee.
- Referred to Coms. on B. & F.I., JUD. and APPR.
- In Senate. Read first time. To Com. on RLS. for assignment.
- Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 1560.)
- Read second time. Ordered to third reading.
- From committee: Do pass. (Ayes 9. Noes 0.) (May 5).
- Referred to Com. on B.&F.