California is in the process of creating a financial watchdog agency after the current administration rendered the federal Consumer Financial Protection Bureau useless. Financial firms and small businesses lined up in agreement as Governor Gavin Newsome proposed the Department of Financial Protection and Innovation.
"There are very predatory vendors making false promises that consumers need to be protected from," said sticky.io president and CEO Brian Bogosian.
The new department of state will provide Californians with business intelligence protection from predatory lenders, aggressive debt collectors, credit repair schemes and other questionable financial practices not actively being investigated.
“Consumer protections are an area where California wants to show that we care,” Assemblywoman Monique Limón told NPR. “As the fifth-largest economy in the world, we think that it is very important and it’s the right thing to do.”
While many bankers believe the bill will help tighten regulations for online lenders, other lenders are urging for exemption.