The CCFPL provides the DFPI the UDAAP that is same authority Dodd-Frank Title X provides the CFPB: The DFPI usually takes enforcement action against covered people for UDAAP violations and that can issue regulations regarding UDAAP.10
The CCFPL additionally allows the DFPI to carry procedures pursuant to your Dodd-Frank Title X conditions authorizing state regulators to enforce Title X and any regulations promulgated by the CFPB pursuant to Title X.11 The DFPI may bring these procedures against both covered persons under the CCFPL along with current DBO licensees, including California-licensed banking institutions, savings and loans and credit unions, California Financing Law licensees, and California household Lending Act licensees.
The DFPI will need to provide advance notice to your CFPB if it depends on this authority to create actions against current licensees. There’s absolutely no comparable requirement in the CCFPL for actions brought against covered persons that aren’t exempted.
The CCFPL authorizes the DFPI to recommend guidelines determining UDAAP, which will connect with covered persons. The DFPI must interpret вЂњunfairвЂќ and вЂњdeceptiveвЂќ in accordance with Business & Professions Code part 17200 and cases interpreting that supply. The CCFPL describes вЂњabusiveвЂќ into the way that is same it really is defined under Dodd-Frank, and needs the DFPI to interpret the definition of regularly with Title X. Any inconsistency, though, is usually to be fixed and only greater defenses and much more expansive protection.12
When you look at the only supply when you look at the legislation that will not concern consumers, the CCFPL authorizes the DFPI to determine UDAAP regarding the the providing of commercial funding or other lending options and services to small enterprises, nonprofits, and household farms.13