Publication | ThinkSet
Get Ready for the New California Consumer Financial Protection Bureau
Walter Mix and David Abshier
The state’s answer to the CFPB will have sweeping jurisdiction and power—but also could help spark fintech innovation.
More than 2,300 miles from Washington, DC, lawmakers are preparing perhaps the most significant changes in the regulation of financial services since passage of the Dodd-Frank Act a decade ago. In the coming months, the California State Legislature is likely to approve the creation of a new state agency, loosely modeled after the US Consumer Financial Protection Bureau (CFPB), with sweeping regulatory authority and enforcement powers that will reach far beyond California state lines.
The draft California Consumer Financial Protection Law (CCFPL), which was rolled into Gov. Gavin Newsom’s 2020–2021 state budget, would give the new Department of Financial Protection and Innovation (DFPI) a larger oversight mandate and far greater resources than its predecessor, the Department of Business Oversight (DBO). The DFPI would have enforcement authority over 51 state consumer finance laws and 21 federal consumer laws.