Effective January 1, 2021, California’s revamped consumer protection agency—the Department of Financial Protection and Innovation (DFPI)—has new, sweeping power over consumer financial services providers in the most populous U.S. state.  To help clients navigate this new regulatory authority, Ballard Spahr’s nationally recognized Consumer Financial Services Group has created a California “Mini-CFPB” team.  The new team draws on our long history of counseling clients whose businesses are governed by government regulatory agencies, including the Consumer Financial Protection Bureau—the model for the DFPI—as well as the DFPI’s predecessor agency, the California Department of Business Oversight.

Since the DFPI gained its expanded authority last month, we have been hired to represent clients in connection with two of the first waves of DFPI investigations. In addition to handling enforcement matters, our DFPI-related capabilities include helping clients with agency examinations, licensing issues, and rulemaking proposals.  Our team is closely monitoring all regulatory, supervisory, and enforcement developments relating to the DFPI.

To provide one location where members of the consumer financial services industry can access key information, we have created a California Consumer Financial Protection Law Resource Center that can be accessed on our blog, Consumer Finance Monitor.  Additional insights will be highlighted in our Consumer Finance Monitor podcast, where guests have included DFPI General Counsel Bret Ladine.