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In ELIZABETH BELYEA, et al., Plaintiffs, v. GREENSKY, INC., et al., No. 3:20-CV-01693-JSC, 2023 WL 8701311, at *1 (N.D. Cal. Dec. 15, 2023), Judge Corley dismissed a CLRA claim against a loan broker.  The facts were as follows: GreenSky is a “loan broker and sometimes-lender” that brokers loans for consumers “to pay for home improvement, home repair, and healthcare costs,”… Read More

On December 5, 2023, Small Business Finance Association v. Clothilde Hewlett , Judge Klausner of the United States District Court for the Central District confirmed the propriety of the DFPI's regulation of small business lending.  The background of the DFPI's regulations is as follows: On September 30, 2018, California enacted Senate Bill ("SB") 1235, codified at California Financial Codes sections 22800-22805. The… Read More

In Lagrisola v. N. Am. Fin. Corp., No. D080758, 2023 WL 7273708, at *1–2 (Cal. Ct. App. Nov. 3, 2023), the Court of Appeal found no private right of action against a mortgage company who was not properly licensed in California. NAFC is a Nevada based business entity with offices in California. In 2017, the Lagrisolas borrowed $550,000 from NAFC,… Read More

Today, the DFPI issued a new set of proposed "scope" regulations as to the applicability of the DCLA: On December 22, 2021, regulations implementing the application requirements under the DCLA became effective. On August 19, 2021, the Commissioner released an invitation to comment on an anticipated subsequent rulemaking related to the scope, annual report, and bond amount increase provisions of… Read More

Today, the DFPI issued Notice of the next Advisory Committee meeting, scheduled for May 1, 2023 at 10:00 a.m. PST.  The meeting will take place virtually, will be open to the public, and will be led by Senior Deputy Commissioner Suzanne Martindale and Deputy Commissioner Melinda Lee. The next meeting of the committee will take place virtually on May 1,… Read More

Today, the DFPI issued a Notice of Proposed Rulemaking relevant to entities who may have to register with the DFPI under the CCFLP.  Comments are due by May 2, 2023.  In the DFPI's purpose statement, the DFPI explained: In September 2020, Governor Gavin Newsom signed Assembly Bill 1864, which codified the CCFPL in division 24 of the Financial Code and vested… Read More

On May 20, 2022, the Department of Financial Protection and Innovation published a Notice of Proposed Rulemaking (PRO 03-21) to adopt Article 5, including sections 1070, 1071, 1072, 1073, 1074, and 1075 of Title 10, Chapter 3, Subchapter 4 of the California Code of Regulations, to implement, interpret, and make specific Financial Code section 90008 of the California Consumer Financial… Read More

On July 15, the DFPI issued proposed regulations on the scope of  debt collection licensure required by the DCLA.  The text of the proposed regulations can be found  here:  PRO-05-21-Text-DCLA-Invitation-for-Comments.-7.14.22 There are a number of significant proposed regulations for licensees, applications, or potential licensees. First, the DFPI's proposed regulations would confirm that W-2 or true employees are not required to… Read More

The DFPI issued a Notice of Proposed Rulemaking, the comment period for which closes on July 5, 2022.  The NPR relates to obligating covered persons to implement and maintain a process for consumers to make complaints and for covered persons to respond to them.  The Notice is here (PRO-03-21-Notice-of-Proposed-Rulemaking-5-17-22 and the Proposed Regulations can be found here In the Statement of… Read More

On August 19, 2021, the California Department of Financial Protection and Innovation issued a request for comments as it considers a second rulemaking related to the Debt Collection Licensing Act. The first rulemaking, issued earlier this year relates to the license application process and requirements for debt collectors who may begin to apply for a debt collection license starting in… Read More

California’s Department of Financial Protection and Innovation has filed a notice of proposed rulemaking on April 23, 2021 for the Debt Collection Licensing Act (DCLA). The proposed regulations are to be added in Title 10, California Code of Regulations, Subchapter 11.3 “Debt Collection Licensing Act.” A copy of the proposed rulemaking text is here. The proposed regulations cover: requirements to… Read More

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… Read More

We previously posted about California’s new Department of Financial Protection and Innovation (“DFPI”) (formerly Department of Business Oversight) and some of its new powers to regulate debt collectors and other financial institutions under the Debt Collection Licensing Act and California Consumer Financial Protection Law (“CFPL”) (also known as the mini-CFPB). Both laws took effect on January 1, 2021. While the… Read More