In 2020, the legislature enacted the California Consumer Financial Protection Law. The CCFPL significantly expanded the regulatory authority of the the Department of Financial Protection & Innovation by granting it the power to enforce any California or federal consumer financial law pursuant to Financial Code section § 90003(a)(2). Currently, this authority has been exercised with respect to "covered persons", as defined in Financial Code § 90005(f). These include providers of debt settlement services, income-based advances, private postsecondary education financing, and student debt relief services.
Now, the legislature is pondering a huge expansion of the DFPI's jurisdiction by authorizing the DFPI to use its authority to enforce Financial Code § 90003 against persons and their employees licensed by the DFPI under other statutes. If SB 825 becomes law, the DFPI could take action against broker-dealers, investment advisers, finance lenders, and others for, among other things, engaging in any unlawful, unfair, deceptive, or abusive act or practice with respect to consumer financial products or services.
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