Update to California’s Fair Debt Collection Statute: What Self-Storage Businesses Need to Know

California self-storage businesses need to be aware of changes to the state’s fair debt collection statute to ensure they are in compliance with the expanded scope of the law. The California Self Storage Association (CSSA) warns that several lawsuits alleging noncompliance have already been filed since the amendment’s effective date of January 1, 2025. 

California’s Rosenthal Fair Debt Collection Practices Act (Rosenthal Act) was originally passed in 2020 and prohibits debt collectors from engaging in unfair or deceptive acts or practices when collecting on consumer debt. The law was amended in September 2024 (SB 1286), and updated provisions became effective January 1, 2025. The amendment broadens the scope to include most commercial debt owed by the same debtor to the same lender totaling no more than $500,000. Self-storage operations are among the many commercial businesses affected by these changes. 

The CSSA website offers a detailed explanation of the law’s requirements as well as the association’s recommendations for self-storage business owners. Click here to visit the CSSA website. 

As a leading provider of specialty insurance for self-storage businesses for 50 years, MiniCo is actively monitoring this and other legislative updates impacting the industry. Along with reviewing facility policies and practices, and consulting the operation’s legal counsel, we strongly encourage business owners to review their commercial insurance coverage to ensure their policies include appropriate coverage and limits for potential claims and lawsuits pertaining to debt collection. 

Rest assured that MiniCo’s experienced underwriting team is standing by to assist. We invite insurance agents and brokers representing self-storage risks to contact MiniCo to learn more about our exclusive Commercial Self-Storage insurance program, risk management resources, and to get a quote.