California’s Division of Monetary Safety and Innovation mentioned it has issued subpoenas to a dozen debt assortment corporations alleging potential violations of “illegal, unfair, misleading or abusive” practices.

The state regulator mentioned Tuesday that the subpoenas had been based mostly on shopper complaints and marked the primary main motion taken by the company because the California Client Monetary Safety Regulation went into impact on Jan. 1.

The regulation gave the company expanded oversight and enforcement authority over beforehand unregulated industries together with debt collectors, fintech companies and credit score reporting businesses.

“We take our expanded duty very significantly and are transferring swiftly to make sure debt collectors don’t violate the rights of California customers,” DFPI Commissioner Manny Alvarez mentioned in a press launch.

State and federal legal guidelines prohibit debt collectors from harassing or threatening customers, calling at uncommon occasions, or trying to gather phantom money owed. The subpoenas search paperwork associated to how the businesses acquire money owed and talk with customers.

“Customers allege that these debt collectors name repeatedly, fail to validate money owed, and threaten to sue the customers for money owed they don’t owe,” the DFPI mentioned in a press launch.

The company mentioned it issued subpoenas to Portfolio Restoration Associates, a unit of PRA Group in Norfolk, Va.; Encore Capital Group, a San Diego publicly-traded debt purchaser and its subsidiaries Atlantic Credit score and Finance, Midland Credit score Administration, and Midland Funding; Enhanced Restoration Firm, a Jacksonville, Fla., debt purchaser; and LVNV Funding, a Greenville, S.C., debt proprietor and assortment affiliate Resurgent HP.

Different companies that additionally had been despatched subpoenas embrace the Workplaces of Morgan and Moss, a Newport Seashore, Calif., debt collector; Convergent Outsourcing, a Renton, Wash., debt purchaser and collector; Spectrum Billing Companies, a Los Angeles collections arm of the cable and telephone community; and Monterey Monetary Companies, a Monterrey, Calif., collections agency.