The Department of Business Oversight (DBO) is getting a new name. Under a new law passed in California referred to as the California Consumer Financial Protection Law the DBO will become the California Department of Financial Protection and Innovation. Not only will they be getting a name change but their authority will also be expanding under this law. As we have seen in the last few months scams are on the rise, so it is pivotal that there is more oversight being conducted of financial institutions. This is increased oversight of financial organizations not currently under the DBO’s jurisdiction like unlicensed financial institutions. They will be adding staff over the next three years and creating a research branch in the DBO. Their primary focus will be emerging financial products. They will also expand their branch that specializes in consumer outreach for vulnerable consumer groups such as students, military service members and senior citizens. Due to “pandemic-inspired scams” they will be increasing public education programs to help keep consumers in california safe. The name change is to be enacted immediately and the DBO’s increased oversight is set to begin on January 1 2021. The DBO currently oversees several financial institutions including but not limited to state-banks, securities broker-dealers, and escrow companies such as Affinity Escrow Services. Now more than ever people must stay vigilant to avoid getting scammed. For more information please see the DBO’s website here.
