Consumer loans.

Senators Limón and Grayson's amendment to California's Consumer Financial Protection Law clarifies the Department of Financial Protection and Innovation's authority to enforce regulations against deceptive or abusive practices, even when entities operate under specific state licenses or certifications.

The measure modifies existing exemptions in the Financial Code that previously shielded certain licensed entities - including escrow agents, finance lenders, broker-dealers, and mortgage professionals - from aspects of the department's oversight. While maintaining these basic licensing exemptions, the amendment explicitly states that such exemptions do not prevent the commissioner from taking action against deceptive or abusive acts under Section 90003. Banks, credit unions, and other federally regulated institutions retain their existing exemptions from the law's provisions.

The department's expanded enforcement capability applies to all entities operating under state licenses issued by the Department of Financial Protection and Innovation, creating uniform accountability for prohibited practices across California's financial services sector. This change affects the compliance obligations of previously exempted licensees while preserving their underlying operational authorities.