In a report that was first publicized by ACA International, the California Department of Financial Protection and Innovation has released its 2024 annual report detailing activities under the California Consumer Financial Protection Law (CCFPL), and debt collectors remain a top target. Of the 2,388 consumer complaints filed under the CCFPL last year, 31% were related to debt collection, second only to crypto assets.
By the numbers:
- 📈 2,388 CCFPL-related complaints were filed in 2024 — up 6% from 2023.
- 📞 729 of those were debt collection complaints, covering credit cards, medical debt, payday loans, auto, student loans, judgments, and mortgages.
- 🔍 699 investigations were opened and 202 public enforcement actions issued — both up 12% year-over-year.
- ⚖️ $4.2 million judgment obtained in DFPI’s first joint lawsuit with the CFPB under Title X of Dodd-Frank.
- 📝 New regulations were implemented requiring registration of companies offering income-based advances, private postsecondary education financing, debt settlement services, and student debt relief.
- 🧾 $2.7 million collected in CCFPL penalties.
Zoom in: The DFPI’s enforcement unit maintained an aggressive posture, spotlighting cases such as:
- A $2.5 million penalty against Chime Financial over complaint-handling failures.
- Crackdowns on student loan debt relief firms that charged illegal fees and made false guarantees.
- A $50,000 penalty against Credova for hidden “junk fees.”
- The continuation of litigation against OppFi, with a $100 million penalty on the table.
Between the lines: The DFPI is leaning into its oversight powers granted under the CCFPL, including expanded supervision, new examination protocols, and data collection via the Nationwide Multistate Licensing System. Its regulatory net now covers a growing number of financial service providers previously unregulated at the state level.
What’s next: The Department is expected to initiate additional rulemaking in 2025, extending registration requirements to more financial services sectors. In the meantime, collection operations in California should take note of the increased scrutiny and enforcement activity — especially as DFPI continues to deepen its collaboration with federal regulators like the CFPB.
