California SB 616: Tougher Rules for Collectors on Judgments

California’s SB 616 introduces new rules that protect consumers by creating automatic exemptions for the first $1,724 in bank accounts from levies. For creditors and collectors, this law makes judgment enforcement more challenging.

Impact on Collectors

This law means that even with a valid court judgment, creditors may recover less money from a debtor’s bank account. Collectors must adapt strategies to ensure compliance while still achieving recovery goals.

What It Means for Businesses

• Slower Recovery Timelines
• Higher Legal and Administrative Costs
• Increased Reliance on Negotiated Settlements

Trueline’s Approach

At Trueline Debt Solutions, we adapt to changing laws by focusing on respectful communication and flexible repayment plans. While SB 616 adds obstacles, we help clients secure recoveries through negotiation, persistence, and compliance.

Conclusion: Regulatory changes like SB 616 highlight the need for professional, adaptable collection partners. Trueline ensures creditors remain compliant while maximizing results.