California Governor Gavin Newsom (D) last Friday signed twelve bills to protect consumers from financial predators and abusive business practices, according to the Sierra Sun Times reported. Central to the package is A.B. 1864, a law that significantly expands the state’s ability to protect Californians against abusive and predatory financial products and services. The bill establishes the Department of Financial Protection and Innovation (DFPI), adding 90 positions over the next three years to transform the agency into California’s version of the federal Consumer Financial Protection Bureau. Other bills signed by Governor Newsom today protect students from abusive practices. A.B. 376 creates the Student Borrower Bill of Rights and provides borrowers with enforceable protections against abusive lending practices. A.B. 70 prevents for-profit colleges from using shell non-profit corporations to skirt state student protections and state regulations.
