Legislation to Strengthen Critical Consumer Financial Protection Laws Passes Out of First Committee

(SACRAMENTO) – Last week, legislation that would empower California to enforce consumer financial protection laws, authored by Senator Monique Limón and Senator Tim Grayson, passed out of the Senate Banking and Financial Institutions Committee with a vote of 5-2. SB 825 is motivated by changes at the federal level that have made ineffective the Consumer Financial Protection Bureau (CFPB), the independent federal agency tasked with enforcing consumer financial protection laws.

Specifically, SB 825 provides the Department of Financial Protection and Innovation with clear authority to take enforcement actions against financial institutions engaging in unfair, deceptive, or abusive practices. 

“The importance of protecting Californians from deceptive and abusive financial practices cannot be overstated. Californians deserve an agency they can turn to when they have been taken advantage of by a financial institution,” said Senator Monique Limón (D – Santa Barbara). “Given the current state of the CFPB it is necessary that California step up to the plate to enforce consumer financial protection laws. Thank you to Senate Banking Chair, Senator Tim Grayson, for partnering with me in this effort to protect California consumers.”

“It’s simple: government should protect consumers from unfair and harmful practices,” said Senator Tim Grayson (D-Concord). “I want to help ensure that Californians can participate in our financial systems with the confidence that institutions are following the same rules of the road as years past, and that they have a government agency they can turn to if those rules aren’t followed.  I’m proud to again be partnering with Senator Limón on a commonsense measure to make sure consumers are protected in our state.”

In recent months, the CFPB has been subject to a stop work order, hundreds of federal employees have been fired, and the agency has begun rolling back enforcement actions, effectively dismantling it. With these changes to the CFPB, California must be able to stand independently when enforcing the law and uphold the state’s mission to ensure a fair and transparent financial marketplace. 

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Monique Limón represents the 21st Senate District, which includes Santa Barbara, Ventura, Goleta, Buellton, Carpinteria, Guadalupe, Lompoc, Santa Maria, Solvang, Camarillo, Fillmore, Ojai, Oxnard, Santa Paula, Port Hueneme, Blacklake, Callender, Grover Beach, Los Berros, Nipomo, Oceano, Woodlands. She currently serves as the Chair of the Senate Democratic Caucus, Chair of the Senate Natural Resources and Water Committee, Vice Chair of the California Legislative Women’s Caucus and Vice Chair of the Central Coast Caucus.