Consumer Financial Service Protection: Key Entities There are many entities involved in protecting consumers from financial products and services. The Department of Business Oversight (DBO), for example, licenses many financial service providers such as banks, money transmitters and broker-dealers. The Federal Consumer Financial Protection Bureau enforces financial service and product providers who engage in deceptive or abusive acts (UDAAPs)
Governor’s proposal. The Governor proposes budget trailer legislation that will make various changes to DBO. This includes changing Slap Boxing its name to Department of Financial Protection Innovation (DFPI) and giving it the authority to enforce financial service providers’ UDAAP violations and register consumers of financial services.
Background
Below is a summary of the responsibilities of various federal and state entities to protect Californians who use financial products and services.
Department of Business Oversight. DBO was established July 1, 2013 by the merger of the Department of Financial Institutions with the Department of Corporations under the Governor’s Reorganization Plan No. 2 of 2012. 2 of 2012. The DBO is made up of two major licensing divisions.
The Financial Institutions Fund supports the Division of Financial Institutions (DFI), which licenses financial institutions such as banks, credit unions and money transmitters. The State Corporations Fund supports the Division of Corporations (DOC), which licenses other financial entities such as investment advisors, student loan servicers, and securities broker-dealers.
California Department of business oversight Justice (DOJ). The Attorney General has broad enforcement power to bring legal cases against financial service and product providers and entities that engage in illegal, misleading or unfair business practices. In recent years, DOJ has brought cases relating to large-scale mortgage fraud, illegal debt collection practices, and misconduct of servicers and providers of student loans.
Other State Departments. Other state departments regulate financial services and products providers. The Department of Insurance, for example, licenses title companies that provide real estate settlement services. The department of business oversight Real Estate also licenses brokers and lenders. They have the authority to enforce licensees who engage in illegal practices.
