Last year, California enacted AB 1864, Cal. Stats. 2020, Ch. 157, creating the California Consumer Financial Protection Law (CCFPL) under Division 24 of the Financial Code. Remarkably, the legislature left it up to the Department of Financial Protection and Innovation to determine what industries will become subject to registration requirements. Having been handed a regulatory tabula rasa, the DFPI is now asking the public:
"For what industries should the DFPI first establish registration requirements under Financial Code section 90009, subdivision (a)?"
This is just one of many questions posed in the DFPI's recently issued invitation for comments. The DFPI is requesting input on a great deal of equally broad questions. For example, it is asking:
- Should the DFPI prescribe rules to ensure that the features of a consumer financial product or service are fully, accurately, and effectively disclosed to consumers in a manner that permits consumers to understand the costs, benefits, and risks associated with the product or service?
- Should providers of commercial financing and other financial products and services to small business recipients, nonprofits, and family farms be required to collect and report data to the DFPI?
- What reasonable procedures should the DFPI establish to ensure that businesses provide timely responses to consumer complaints and inquiries?