California Consumer Financial Protection Law

Protecting Consumers, Fostering Responsible Innovation

The California Consumer Financial Protection Law (CCFPL) expanded the Department’s oversight to better protect consumers, keep up with emerging financial innovation, and spur responsible job growth. For the first time in its history, the DFPI can oversee providers of certain financial products and services previously unregulated by the Department, such as debt-relief companies, credit reporting agencies, consumer credit repair companies and others.

On January 1, 2026, a new law, SB 825, will go into effect that helps to strengthen protection for California consumers. While many California businesses currently engage in best practices and comply with the law, at DFPI, we see many emerging trends indicating risks to consumers in the Golden State, the fourth-largest economy in the world. This law clarifies that providers of consumer financial products and services, regardless of their licensing status, are subject to the DFPI’s authority to stop unlawful, unfair, deceptive, or abusive acts or practices. This applies to banks, mortgage lenders, escrow agents, brokers, and other entities that DFPI regulates. The law helps ensure that businesses operate on a level playing field and helps DFPI protect California consumers from illegal practices that cost time and money, or worse, may facilitate frauds and scams.

These laws gives the Department expanded authority and resources to:

• Protect consumers from predatory businesses.
• Spur responsible innovation in financial services by clarifying regulatory expectations for emerging products and services.
• Oversee financial activity previously unregulated by our Department and keep up with emerging financial trends
• Increase public outreach and education to vulnerable populations.

The CCFPL created a Consumer Financial Protection Division, an Office of Financial Technology Innovation, and an Office of the Ombuds. The Consumer Financial Protection Division helps to:

• Supervise and register financial service providers previously unregulated by the DFPI.
• Conduct targeted outreach to communities historically underserved throughout the state.
• Conduct market monitoring and research to keep up with consumer trends.

The Office of Financial Technology Innovation provides early guidance to entrepreneurs developing financial products and services in California to spur job creation and safeguard consumers. The Office of the Ombuds provides an impartial review of complaints and resolutions improve and streamline department operations. The CCPFL was enacted in Assembly Bill 1864 sponsored by then-Assembly Banking Chair Monique Limón, D-Santa Barbara. SB 825 was sponsored by Senators Limon, D-Santa Barbara and Tim Grayson, D-Concord.

What Does This Mean for Consumers?

The CCFPL gives the Department new tools to better protect consumers from unlawful, unfair, deceptive, and abusive practices.

Your state financial regulator can now oversee industries previously unregulated by the Department, including debt-relief companies, consumer credit reporting agencies, credit repair companies, and others.

We can now accept and investigate consumer complaints about a financial service provider that you think may be using unlawful, unfair, deceptive, or abusive practices. This is regardless of their licensing status. With a live call center and translation services in dozens of languages, you can contact us if you have questions, are having issues with a provider, or need to file a complaint. To file a complaint, please see the “File a Complaint” tab at the top of our website or follow the link below.

• Email us at [email protected].
• Call us with questions or issues at (866) 275-2677.
• File a complaint

What Does This Mean for Businesses?

Under the CCFPL, the Department of Financial Protection and Innovation has expanded authority to oversee financial service and product providers it did not previously regulate.

These include, but are not limited to:

1. Credit repair and consumer credit reporting companies
2. Debt relief companies
3. Private education funding
4. Income-based advances (also called earned wage advances)
5. Payment services providers and other nonbank financial services companies

Many industries will be required to register with the Department in the coming years. For additional information on what businesses will be required to register and ongoing rulemaking related to the CCFPL, visit our Covered Persons page.

The California Legislative Information website has the full text of Senate Bill 825 and Assembly Bill 1864.

CCFPL Commercial Financing Annual Report Information

On August 2, 2023, the Office of Administrative Law (OAL) approved regulations under the CCFPL concerning the offering and provision of commercial financing and other financial products and services to small businesses, nonprofits, and family farms. The new rules require annual reporting of commercial financing activity. Learn more about the annual reporting requirements.

Publications

The DFPI is required to publish an annual report detailing actions taken under the CCFPL, including rulemaking, enforcement, oversight, consumer complaints, education and research, and the activities of the Office of Financial Technology Innovation.

• California Consumer Financial Protection Law Report