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ARTICLE · 15 MARCH 2023

California DFPI Issues Modified Proposed UDAAP Regulations

Morrison Foerster
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The California Department of Financial Protection and Innovation (DFPI) issued modified proposed regulations to implement the provision of the California Consumer Financial Protection Law (CCFPL)...

United StatesFinance and Banking
Nancy Thomas
Nancy Thomas
Calvin Dennis Funk
Calvin Dennis Funk
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The California Department of Financial Protection and Innovation (DFPI) issued modified proposed regulations to implement the provision of the California Consumer Financial Protection Law (CCFPL) on the offering or provision of commercial financing or other financial products and services to small businesses and certain other entities. The modified proposed regulations include changes made in response to comments the DFPI received on its June 2022 proposed regulations on this issue. We highlight the key proposed changes below.

Original Proposed Regulations

As discussed in our client alert on the initial proposed regulations, despite its title, the CCFPL contains one provision regarding commercial financing. This provision authorizes the DFPI to define unfair, deceptive, and abusive acts and practices (UDAAP) in connection with the offering of commercial financing or other financial products and services to small businesses, nonprofits, and family farms.1 It also

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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