The Department of Business Oversight (DBO) changed its name to the Department of Financial Protection and Innovation (DFPI) effective September 29, 2020. Along with this name change, effective January 1, 2021, the new California Consumer Financial Protection Law (CCFPL) grants the Department of Financial Protection and Innovation new powers to investigate previously unregulated businesses, such as debt collectors, rent to own contracts and other point of sale financing, consumer credit reporting agencies and credit repair agencies.
The Department of Financial Protection and Innovation’s primary role will continue to be the licensing and license regulation of California finance lender licensees (CFLs), California Deferred Deposit lender licenses under the CDTTL (also known as payday lenders), mortgage loan originator licenses (MLOs), state securities law regulations, and the regulation of certain state-chartered financial institutions such as credit unions.
This is the second major name change for this agency. Until 2013, it was called the California Department of Corporations. In 2013, the State of California combined the California Department of Corporations and the California Department of Financial Institutions into the Department of Business Oversight. With the addition of new powers including expanded reach of regulation into fintech areas, this year DBO has been renamed DFPI.
Cases that the Department of Business Oversight has brought as DBO against a licensee before the name change will not be affected by the name change of this license regulator from DBO to DFPI. However, moving forward, license discipline actions against California finance lenders, California payday lenders, mortgage loan originators and others will be brought by the DFPI. Common DFPI actions will include cease and desist orders, or C&D orders, notices of intention to revoke a license, accusations and license denials. DFPI will also carry out regulatory examinations of regulated businesses such as California finance lender licenses.
If you have a legal issue with the DFPI, Ray & Bishop, PLC can help. For more information, please see the DBO – DFPI page on our website.