SACRAMENTO – California to create national consumer financial protection agency to fill void left by federal regulators, who waived oversight during Trump administration
Gov Gavin Newsom on Sep 18, 2019, file photo On Friday, Newsom signed a law establishing the State Department of Financial Protection and Innovation to regular credit reporting agencies and agents of recovery
Gov Gavin Newsom on Friday signed a law establishing the Department of Financial Protection and Innovation, a restructured business oversight department that will expand its activities to include credit bureaus, debt collectors and FinTech companies that were previously not subject to state regulation
The new State Department, Newsom said in an online signing ceremony, « will create the conditions for innovation to flourish so that we can handle this and we can just fight against his excesses We therefore support risk taking, not recklessness «
AB1864 by MP Monique Limón, D-Santa Barbara, gives the State Department the power to enforce the 2010 Consumer Financial Protection Act and regulations issued by the Federal Consumer Financial Protection Bureau , the agency created by this law
The department will also be able to develop its own rules to prevent « illegal, unfair, deceptive or abusive practices » and demand financial sanctions against service providers who practice them
In addition to the banks and credit unions that California already regulates, the state will now oversee services such as debt settlement, credit repair, check cashing, capital leases and retail sales financing Out-of-state banks and certain services, including mortgage lenders, escrow agents and investment advisers, are exempt from the law
“For decades California has tried to do more for consumers, and honestly we have failed,” said Limón “Helping consumers make sure they have an agency looking after them before any other entity is the right thing to do «
The Federal Office of Consumer Protection was established to oversee products such as credit cards and home mortgages in the wake of the 2008 Wall Street financial crisis and Republicans opposed its training as excessive government
After President Trump took office, agency workers fought for control with his administration, which pledged to curb operations A court challenge over the office’s scope and independence ended this summer when the Supreme Court ruled it could continue to operate, but its leadership was at the discretion of the president
Supporters have said the state’s financial protection department will serve as a watchdog for low-income communities, seniors and other Californians who have been left economically vulnerable by the coronavirus pandemic
« This bill puts California at the forefront of financial protection for consumers across the country, » said Richard Cordray, senior director of the federal bureau. He said it « would influence financial companies that will struggle. to operate differently elsewhere than in California, they will therefore have to meet higher standards »
Newsom has also signed 11 other consumer protection bills, including AB376 by assemblyman Mark Stone, D-Scotts Valley, creating a borrower’s bill of rights for student loans, and SB908 by Sen Bob Wieckowski , D-Fremont, requiring debt collectors operating in California to be licensed
California, Finance, Gavin Newsom, Financial Services, Consumer Financial Protection Bureau
World news – United States – California to create own consumer financial protection agency
SOURCE: https://www.w24news.com