The California Department of Financial Protection and Innovation (DFPI) issued an invitation for comments on proposed rulemaking under the California Consumer Financial Protection Law (CCFPL). The law was signed by Gov. Gavin Newsom on Sept. 25, 2020. The law prohibits covered persons or service providers from:
- Engaging in any unlawful, unfair, deceptive or abusive act or practice with respect to consumer financial products or services;
- Offering a consumer any financial product or service not in conformity with a consumer financial law; or
- Failing or refusing, as required by a consumer financial law or any rule or order issued by the department thereunder, to permit the department access to or copying of records, establishing or maintaining records, or making reports or providing information to the department.
The CCFPL authorizes the department to establish rules relating to covered persons, service providers, and consumer financial products or services. This includes rules to establish reasonable procedures to provide responses to consumers and rules regarding registration requirements applicable to a covered person engaged in the business of offering consumer financial products or services. It also includes rules identifying unlawful, unfair, deceptive or abusive acts and practices and requirements to prevent those acts or practices.
The DFPI seeks input from stakeholders in developing these regulations and provided several topics and questions to assist interested parties in providing input on rulemaking. These topics include:
- Definitions;
- Exemptions;
- Registration requirements;
- Complaint handling;
- Unlawful, unfair, deceptive and abusive acts and practices;
- Data collection and reporting for commercial financing;
- Disclosures; and
- Clarifying the applicability of California credit cost provisions.
The commissioner requested interested parties submit comments by March 8, 2021.