California DFPI Seeks Comments on Draft CCFPL Rules

On May 20, the California DFPI issued a Notice of Proposed Rulemaking seeking comments on the implementation of the new California Consumer Financial Protection Act (CCFPL) rules.

Previously, the CCFPL extended the supervisory authority of the DFPI to cover business activities that it could not previously regulate, including but not limited to debt collection, debt settlement, repair of credit, check cashing, lease-to-own contracts, retail financing, consumer credit. reporting and lead generation. This new rule would allow the DFPI to establish reasonable procedures for Covered Persons to provide a prompt response to consumers regarding complaints and inquiries aimed at protecting consumers by ensuring that Covered Persons have policies in place. and written procedures for handling complaints and inquiries.

Specifically, the new rules would establish procedures for: responding to consumer complaints, filing consumer complaints, acknowledging receipt of complaints, reviewing and evaluating complaints, tracking complaints, responding to complaints, maintaining a written record of each complaint, administering the complaints process without discrimination, and reporting complaints to the DFPI.

Comments are due by July 5.

put into practice: The California legislature has provided that the CCFPL protects consumers against discrimination and unfair, deceptive, and abusive acts and practices of covered persons in connection with financial products and services. This new rule aims to implement this intention by expanding the ability of the DFPI to improve the accountability and transparency of financial service providers.

If implemented, this new rule would finally require covered persons to respond promptly to complaints and inquiries by responding to concerns raised by consumers and it would allow the DFPI to bring enforcement actions in violation of the rule. proposed.

Copyright © 2022, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume XII, Number 158

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