The department also seeks comments on complaints and small business protections to help inform the department’s implementation of the California Consumer Financial Protection Law.
8/19/2021 10:00
The California Department of Financial Protection and Innovation (DFPI) continues to seek comments on the recently enacted California Consumer Financial Protection Law (CCFPL) and the Debt Collection Licensing Act (DCLA).
On April 8, 2021, the commissioner of the DFPI initiated a rulemaking to adopt regulations related to the requirements for licensure under the DCLA. The commissioner is now considering a second rulemaking to adopt regulations related to other provisions of the DCLA, including its scope, annual reports, and bond amounts.
The commissioner invites interested parties to provide input in developing regulations related to these topics and has formulated questions to assist such parties in providing this input. The commissioner also invites interested parties to provide example language for regulations related to these topics.
The invitation and questions may be found here:
To submit comments on the licensing inquiry:
- Email [email protected] and include “PRO 05-21” in the subject line; or
- Mail to Department of Financial Protection and Innovation Attn: Sandra Sandoval, Legal Division 300 S. Spring Street, Suite 15513 Los Angeles, CA 90013.
The deadline to submit comments is Monday, Oct. 5, 2021.
Licensing Applications Coming Sept. 1
Agencies also need to be aware of new California licensing requirements under the DCLA requiring California debt collectors and buyers to apply for a license from the DFPI by Dec. 31, 2021.
Licensing applications will be available through the Nationwide Multistate Licensing System Sept. 1, ACA previously reported.
Licensing applications will be due by Dec. 31, 2021, and are required starting Jan. 1, 2022.
Licensees interested in continuing their operations in California starting Jan. 1, 2022, should start gathering materials necessary to apply now to ensure they are ready when the applications are available. Failure to apply by the deadline and continued operation without a license may result in enforcement actions.
More information is also available on the DFPI’s FAQ website for debt collectors.
Consumer Protection Law Comments
Since February, the DFPI has considered stakeholder comments on regulations to implement the CCFPL and is now seeking comments on draft text related to the handling of complaints by providers of financial products and services and defining unfair, deceptive, and abusive acts and practices (UDAAP) in connection with the offering of commercial financing and other financial products and services to small businesses.
Gov. Gavin Newsom approved the CCFPL (A.B. 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 International 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.
The DFPI invites interested parties to share their input on the two new topics announced Aug. 18 under two separate invitations for comments.
The invitation and draft text related to the handling of consumer complaints by providers of financial products and services may be found here:
The DFPI seeks input from interested parties on draft language implementing Section 90008, subdivisions (a), (b), and (d) of the CCFPL. The rulemaking only covers the procedures for a covered person or service provider to respond to consumer complaints and inquiries; it does not cover the department’s handling of complaints and inquiries, according to the DFPI.
Specific comment inquiries include feedback on whether a covered person should be allowed to delegate the handling of complaints and the economic impact of the draft rules, including on the ability of California businesses to compete with businesses in other states.
To submit comments on the complaints inquiry:
- Email [email protected] with a copy to [email protected]. Include “PRO 03-21” in the subject line; or
- Mail to Department of Financial Protection and Innovation Attn: Sandra Sandoval, Legal Division 300 S. Spring Street, Suite 15513 Los Angeles, CA 90013
UDAAP and Small Businesses Comments
DFPI is also seeking comments on draft text defining unfair, deceptive, and abusive acts and practices in connection with the offering of commercial financing and other financial products and services to small businesses.
In addition to input on the draft language, the DFPI seeks comments from interested parties on the potential economic impact on businesses that would be affected by the draft language, as providers subject to compliance with the draft language or as small business consumers of financial products and services.
The invitation and draft text related to the offering of commercial financing and other financial products and services to small businesses may be found here:
- Invitation for Comments – CCFPL – Small Business Protections
- Draft Text – CCFPL – Small Business Protections
To submit comments on the UDAAP inquiry:
- Email [email protected] and include “PRO 02-21” in the subject line and copy Colleen Monahan at [email protected]; or
- Mail to Department of Financial Protection and Innovation Attn: Sandra Sandoval, Legal Division 300 S. Spring Street, Suite 15513 Los Angeles, CA 90013
The deadline to submit comments on both proposals is Friday, Sept. 17, 2021.