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September 2020

California Legislature Passes New Consumer Financial Protection Law

By: Madeline Skitzki

New-Update-IconOn August 31, 2020, the California Legislature passed Assembly Bill 1864. In general, this bill (1) renamed the Department of Business Oversight as the Department of Financial Protection and Innovation and renamed the commissioner of the Department as the Commissioner of Financial Protection and Innovation, and (2) enacted the California Consumer Financial Protection Law (CCFPL) to, among other purposes, strengthen consumer protections by expanding the ability of the Department of Financial Protection and Innovation to improve accountability and transparency in the California financial system and promote nondiscriminatory access to responsible, affordable credit.

Under the bill, the Department of Financial Protection and Innovation is required to regulate the provision of various consumer financial products and services and exercise nonexclusive oversight and enforcement authority under California and federal (to the extent permissible) consumer financial laws. The Department is granted the power to bring administrative and civil actions, issue subpoenas, promulgate regulations, hold hearings, issue publications, conduct investigations, and implement outreach and education programs, and is required to promulgate certain rules and regulations regarding registration requirements. The bill also makes it unlawful for covered persons or service providers to engage in unlawful, unfair, deceptive, or abusive acts or practices with respect to consumer financial products or services or to provide consumers financial products or services that are not in conformity with any consumer financial law.  It further requires covered persons and service providers to file certain documents under oath and imposes specific civil and monetary penalties, as well as injunctive relief, for violations of the CCFPL.  With respect to funding, the bill requires the Commissioner to deposit all money collected or received under the CCFPL with the State Treasurer for the Financial Protection Fund, which is created under the bill for the administration of the CCFPL.


Consumer Finance Observer – Summer 2020 Edition

Summer 2020Jenner & Block has published its fifth issue of Consumer Finance Observer or CFO, a newsletter providing analysis of key consumer finance issues and updates on important developments to watch. As thought leaders, our lawyers write about the consumer finance sector on topics ranging from artificial intelligence, compliance, data security, FinTech, lending, and securities litigation.

In the Summer 2020 issue of the CFO, our consumer finance lawyers discuss: litigation and enforcement consideration for FinTech PPP Lenders; an update on New York State’s Department of Financial Services; the US Supreme Court’s decision in Selia Law LLC v. CFPB; Office of the Comptroller of the Currency's adoption of the rule in Madden v. Midland Funding; COVID-19's disparate impact; and proposed amendments to California's Proposition 65. Contributors are Partners Kali N. BraceyJeremy M. CreelanMichael W. Ross, and Kate T. Spelman; Associates Jacob D. Alderdice and Julian J. Ginos.

To read the full newsletter, please click here