InfoBytes Blog
DFPI releases report one year after enactment of CCFPL
On March 24, the California Department of Financial Protection and Innovation (DFPI) released a statutory report regarding measures the Department has taken since expanding its authority under the California Consumer Financial Protection Law (CCFPL). As previously covered by a Buckley Special Alert, the California Legislature passed Assembly Bill 1864, enacting the CCFPL, which, among other things: (i) established UDAAP authority for DFPI; (ii) authorized DFPI to impose penalties of $2,500 for “each act or omission” in violation of the law without a showing that the violation was willful, arguably representing an enhancement of the Department of Business Oversight’s enforcement powers in contrast to Dodd-Frank and existing California law; and (iii) provided that administration of the law will be funded through the fees generated by the new registration process as well as fines, penalties, settlements, or judgments. According to the report, over the past year DFPI has collected nearly $1 million in restitution for consumers, fielded hundreds of additional complaints related to the law, and launched more than 100 investigations. DFPI also created new divisions which expanded oversight and outreach, including the Consumer Financial Protection Division, Office of Financial Technology Innovation, Office of the Ombuds, and a Targeted Outreach Team responsible for working with historically underserved communities that include veterans, senior citizens, students, and immigrants. Other key takeaways from the report include, among other things, that DFPI (i) issued four invitations for comments to solicit stakeholder feedback on various aspects of implementation of the CCFPL and received 76 comment letters; (ii) opened 106 investigations that resulted in 49 public actions under the CCFPL; and (iii) established a research team to help identify emerging financial activities; scout for unlawful, unfair, deceptive, and abusive practices; and make policy recommendations based on consumer impact.