California Moves to Protect California Consumers with New State Enforcement Powers

(SACRAMENTO) –Today, legislation authored by Senator Monique Limón and Senator Tim Grayson to protect California consumers from financial harm was signed by Governor Gavin Newsom. 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. 

“As a state legislator, I have a foundational responsibility to do everything in my power to work in the interests of Californians, especially when policy change at the federal level threatens their well-being,” said Senate President Elect Monique Limón. “With recent changes to the Consumer Financial Protection Bureau, California consumers are left without a regulatory agency protecting them from financial harm. SB 825 ensures our state’s financial regulator has the means to independently enforce consumer financial protection laws we already have on the books. Thank you to my co-author, Senator Tim Grayson.” 

“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.”

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. 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, SB 825 empowers California 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, and Vice Chair of the Central Coast Caucus.