On 31, 2020, the California legislature passed the California Consumer Financial Protection Law (CCFPL) august. The law reflects Governor Newsom’s eyesight of an infinitely more effective banking agency with brand new registration authority, UDAAP authority mirroring the authority of this CFPB, and expanded enforcement authority. But essential amendments used because of the legislature will exempt many regulated entities through the range regarding the legislation and can impose limitations in the Department that is new of Protection and Innovation’s (DFPI) workout of its authority.

We talk about the reorganization and expansion regarding the banking regulator that accompanies the true title switch towards the DFPI within our companion client alert. We highlight the important thing conditions associated with the CCFPL below.

Give attention to Customer Protection

The statutory purpose differs from the purpose and objectives of Dodd-Frank although most of the CCFPL comes directly from Dodd-Frank Act Title X. The legislative findings assert that “lack of [a dedicated economic solutions regulator with broad authority over providers of financial loans and solutions] has left consumers susceptible to abuse and forced California businesses to compete with unscrupulous providers.”[1] They relate to UDAAP and also to discriminatory methods times that are multiple.Continue reading→