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DFPI releases more proposed CCFPL modifications on complaints and inquiries

State Issues State Regulators DFPI CCFPL Consumer Complaints Agency Rule-Making & Guidance California

State Issues

On March 23, the California Department of Financial Protection and Innovation (DFPI or the Department) released a second round of modifications to proposed regulations for implementing and interpreting certain sections of the California Consumer Financial Protection Law (CCFPL) related to consumer complaints and inquiries. As previously covered by InfoBytes, DFPI issued a notice of proposed rulemaking (NPRM) last May to implement Section 90008 subdivisions (a) (b), and (d)(2)(D) of the CCFPL. Subdivisions (a) and (b) authorize the DFPI to promulgate rules establishing reasonable procedures for covered persons to provide timely responses to consumers and the DFPI concerning consumer complaints and inquiries, and subdivision (d)(2)(D) permits covered persons to withhold certain non-public or confidential information when responding to consumer inquiries. The first round of proposed modifications to the NPRM was released in December (covered by InfoBytes here).

DFPI considered comments received on the initially proposed text and the proposed modifications and is now proposing the following additional changes:

  • Applicability. The proposed modifications clarify that Sections 1072, 1073, and 1074 apply only to covered persons required to be licensed by the DFPI or registered with the DFPI “pursuant to Financial Code sections 90009 and 90009.5, including any rules promulgated thereunder.”
  • Amended definitions. The proposed modifications add an additional exclusion from the definition of “complaint[,]” excluding a “notice of error filed with a remittance transfer provider.” “Complainant” is amended to clarify that it does not include individuals who are not residents of California at the time “the act, omission, decision, condition, or policy giving rise to the complaint was applied to the consumer.”
  • Complaint processes and procedures. Among other things, the proposed modifications add requirements that (i) covered persons issue initial and annual disclosures to California residents that include the procedures for filing a complaint; (ii) the main home page or main contact page include the set hours a live representative is normally available to accept oral complaints; (iii) all written communications—not just the final decision—related to a complaint must be submitted in the language in which the contract was negotiated; and (iv) make changes to DFPI’s annual complaint report requirements, including a new category related to nuisance complaints.

Comments are due April 7.