Comments to inform the new state regulatory agency’s actions are due March 8.
2/5/2021 14:30
The California Department of Financial Innovation (DFPI) is seeking stakeholder input on regulations to implement the state’s Consumer Financial Protection Law (CCFPL).
This is an opportunity for ACA International members, especially those licensed in California, to inform the DFPI’s actions related to regulations of the accounts receivable management (ARM) industry.
Gov. Gavin Newsom approved the CCFPL (AB 1864), which creates a state consumer protection agency, before the end of the state’s 2020 legislative session. The law also expands the state’s power to target unfair, deceptive and abusive acts and practices by financial service providers, ACA previously reported.
In 2020, the CCFPL effectively created the DFPI by renaming and substantially recasting the powers and structure of the Department of Business Oversight. The CCFPL granted the DFPI new and stronger regulatory powers, which took effect Jan. 1, 2021, increased its staffing levels, and created two new sub-agencies, the Division of Consumer Financial Protection and the Office of Financial Technology.
According to the request for comment, “DFPI seeks input from stakeholders in developing regulations to implement the CCFPL. Interested parties may submit comments related to any area on which the DFPI has authority to adopt rules. The DFPI has identified various areas where rulemaking may be appropriate, desirable or necessary at some point.”
Some topics and questions for rulemaking comments include:
- Definitions of financial products and services in the financial code. Are there additional financial products or services that the DFPI should, by regulation, bring within the scope of the CCFPL?
- Should certain entities be exempt from the CCFPL?
- Should certain industries have registration requirements under the financial code?
- What procedures should the DFPI establish for handling complaints?
- Are there specific acts or practices in the market for consumer financial products or services that stakeholders believe are unlawful, unfair, deceptive, or abusive?
Stakeholders are not limited to providing comments about the topics outlined by the DFPI. The DFPI also invites stakeholders to provide example language for regulations relating to their responses. Comments are due March 8, 2021.
Comments may be submitted electronically to [email protected]. Commenters should include “PRO 01-21” in the subject line and copy Charles Carriere at [email protected].
To submit comments by mail use
Department of Financial Protection and Innovation, Legal Division
Attn: Sandra Sandoval, Legal Assistant
300 S. Spring Street, Suite 15513
Los Angeles, CA 90013
Meanwhile, as the DFPI gets organized, agencies need to be aware of new California licensing requirements under the Debt Collection Licensing Act (SB 908) requiring California debt collectors and buyers to apply for a license from the DFPI by Dec. 31, 2021, ACA previously reported. This licensing provision will provide consumers a single location to check whether companies are licensed, and whether they have been subject to any enforcement actions, including license suspensions or revocations.
The DFPI will begin accepting applications for debt collector licenses in the late summer or early fall of 2021. The DFPI expects to begin reviewing those applications and begin issuing licenses by early 2022 and 2023.