California's Mini-CFPB Proposal Pokes its Head Out of the Ground Again

The news that California Assemblywoman Monique Limón is making efforts to make a "mini-CFPB" in California has bubbled to the surface several times over the past year or so. For a while, the mini-CFPB was included in California's proposed budget but eventually was cut. Now, according to NPR and supported by the Assemblywoman's tweet, Limón is seeking to get the mini-CFPB—known in long-form as the Department of Financial Protection and Innovation—on the legislative table before August 31, the legislative deadline.

The NPR article notes that "[t]he new agency would give the state broader power and ability to police aggressive debt collectors, credit repair schemes, predatory lenders and other shady financial practices. The mini-CFPB gained support from the Consumer Financial Protection Bureau's Former Director Richard Cordray, who advised California's Governor on the matter. 

insideARM Perspective

The thing that stands out about this issue is the short deadline to get something on the table—only about 13 days left. However, anyone who thinks that it's impossible for California's legislature to act so quickly should review the extremely condensed timeframe it took for the California Consumer Privacy Act (CCPA) to go from an old revived statute to being signed into law by the Governor. That process took about a week. In other words, anything is possible.