CFPB Ca Style: The California Customer Financial Protection Law Brings More Prov Morrison & Foerster LLP
On 31, 2020, the California legislature passed the California Consumer Financial Protection Law (CCFPL) august. What the law states reflects Governor NewsomвЂ™s eyesight of a more effective banking agency with brand brand new enrollment authority, UDAAP authority mirroring the authority associated with the CFPB, and expanded enforcement authority. But crucial amendments used by the legislature will exempt many regulated entities through the range associated with legislation and can impose limitations on the Department that is new of Protection and InnovationвЂ™s (DFPI) workout of their authority.
We talk about the reorganization and expansion for the banking regulator that accompanies the title modification towards the DFPI inside our companion client alert. We highlight the main element conditions for the CCFPL below.
Concentrate on 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 вЂњlack of [a dedicated economic solutions regulator with broad authority over providers of financial loans and solutions] has left customers in danger of abuse and forced California organizations to compete with unscrupulous providers.вЂќ They make reference to UDAAP also to discriminatory methods numerous times. More