On February 4, 2021, the California Department of Financial Protection and Innovation (formerly DBO) issued an invitation for comments from stakeholders for rulemaking under the California Consumer Financial Protection Law (CCFPL), which became effective January 1, 2021.
As previously discussed, for “covered persons” the CCFPL includes a broad list of prohibited conduct, including engaging in “unlawful, unfair, deceptive, or abusive act or practice with respect to consumer financial products or services,” offering or providing a financial product or service “not in conformity with any consumer financial law or otherwise commit any act or omission in violation of a consumer financial law,” and failing to provide cooperate with the DFPI as it relates to records and reports. The CCFPL also provides the DFPI authority to bring administrative and civil actions, to issue publications and reports, establish a process for consumers to submit complaints against covered persons, and proscribe rules and regulations
Broadly, the potential topics for rulemaking include definitions that apply to the DFPI, exemptions, registration requirements, consumer complaint handling, unlawful, unfair, deceptive, or abusive act or practice (for consumer financial products or services and for commercial financing), data collection and reporting for commercial financing, disclosures for consumer financial products or services, and clarifying the applicability of California credit cost provisions.
The invitation for comments is open through March 8, 2021. The full details of the invitation for comments, including the specific topics for rulemaking, are available here.