California’s SB 1286 significantly expands the scope of the Rosenthal Fair Debt Collection Practices Act (RFDCPA) to include individuals obligated on business debts of under $500,000, giving rise to new regulatory and litigation risks for those who collect commercial accounts for themselves or others. The amendments, effective July 1, 2025, impose compliance requirements not only on law firms and collection agencies but also on commercial lenders, factors, merchant cash advance funders, and debt buyers. Key changes include: