California Creates a State Version of the CFPB

  • California’s Department of Business Oversight has been renamed the California Department of Financial Protection and Innovation (“DFPI”) and will have expanded regulatory and enforcement powers over providers of financial products and services, including credit reporting bureaus and credit repair agencies.
  • Under the new California Consumer Financial Protection Law (“CCFPL”), effective January 21, 2021, the DFPI will have authority similar to the authority granted to the CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the authority to bring civil actions or other enforcement actions against unfair, deceptive or abusive acts and practices, the promulgation of rules applicable to financial products and services, rules governing redress of consumer complaints, and reporting requirements for providers of financial products and services, among other things.
  • According to the DFPI, under the CCFPL, the DFPI will also include a new Division of Consumer Financial Protection, which will be responsible for market monitoring, research on emerging financial products, and expanded consumer outreach to vulnerable populations such as students and senior citizens.