Covered Persons

In 2020, the California State Legislature passed the California Consumer Financial Protection Law as AB 1864 (Limón). Identifying gaps in consumer protection due to strict definitions in existing licensing laws, this law provided the DFPI with the appropriate authority to oversee areas of the financial marketplace previously unregulated in California, including debt settlement and debt relief services, private postsecondary education financing products, and income-based advance products.

The Supervision and Registration of New Covered Persons program is responsible for supervising and regulating providers of these financial activities, including investigating claims of unlawful, unfair, deceptive, and abusive acts or practices, adding even more protections for California consumers.

Who Are Covered Persons?

“Covered persons” refers to any person offering or providing consumer financial products and services to California residents subject to the CCFPL.

These include, but are not limited to, persons offering or providing:

• Debt Settlement Services
• Income-Based Advances
• Private Postsecondary Education Financing
• Student Debt Relief Services

For a full list of consumer financial products and services subject to the CCFPL, please refer to California Financial Code Section 90005 subdivision (k).

Registration

Following the approval of New Regulations in October 2024, financial service providers covered by CCFPL regulations must file an application to register by February 15, 2025, to continue operating legally in the state. Registration will provide valuable data and insights to help inform changes to consumer protection laws and regulations in the future.

Visit California Consumer Financial Protection Law Information for New Registrants for more information.

References And Additional Information:

• Assembly Bill 1864: California Consumer Financial Protection Law (CCFPL)
• California Consumer Financial Protection Law: Regulations, Legislation, Opinions, and Releases
• California’s Legislature Approves Consumer Protection Bills (American Banker, September 1, 2020)
• California Lawmakers Approve Budget Proposal to Create Financial Watchdog for Consumers (Consumer Reports, September 1, 2020)
• California Seeks New Fintech Regulation in Agency Overhaul (Bloomberg, January 10, 2020)