San Diego County officials yesterday voted to create a new consumer protection unit aimed at cracking down on scams, junk fees, and predatory financial practices, a move that highlights a broader shift toward state and local enforcement as federal oversight faces uncertainty. But the decision has sparked pushback from the District Attorney, who warns the new unit could duplicate existing efforts rather than fill meaningful gaps.
The County Board of Supervisors approved the creation of a Consumer Fairness and Public Protection unit in a 4-1 vote, positioning the county to take a more active role in civil enforcement actions against businesses.
What the new unit will do
The new unit will operate within the County Counsel’s Office and focus exclusively on civil cases. Its scope is expected to include:
- Predatory financial practices and debt collection scams
- Health insurer denials and deceptive practices
- Housing and tenant violations
- Environmental and cross-border pollution issues
County leaders argue the unit will allow them to pursue cases that may not be prioritized elsewhere and help residents recover money from harmful practices.
The unit is expected to launch with roughly 20 staff members and could grow to 30 over time, with initial funding coming from consumer protection settlement funds.
A growing role for local enforcement
The move reflects a broader trend. Local officials cited concerns about weakening federal consumer protection infrastructure, particularly uncertainty surrounding the Consumer Financial Protection Bureau, as a key driver behind the initiative.
For professionals in collections and financial services, this signals an increasingly fragmented regulatory environment where enforcement risk may expand beyond federal agencies to include state and local actors with overlapping authority.
Concerns about duplication and governance
San Diego County District Attorney Summer Stephan has been a vocal critic of the proposal, arguing her office already operates a long-standing and highly active consumer protection unit with both civil and criminal enforcement authority.
Her concerns center on two key issues:
- Duplication of efforts: The DA’s office already prosecutes major consumer protection cases and has secured millions in judgments, raising questions about whether a second unit adds value.
- Use of settlement funds: The new unit will draw from a fund built through prior enforcement actions, which Stephan emphasized is legally restricted and must be used carefully.
Stephan also warned that creating a parallel unit could complicate ongoing investigations and limit coordination, particularly where confidentiality rules restrict information sharing between agencies.
