Covered Persons - DFPI
Source: https://dfpi.ca.gov/regulated-industries/covered-persons
Archived: 2026-04-23 17:22
Covered Persons - DFPI
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Covered Persons
The California Consumer Financial Protection Law expanded DFPI oversight to include financial products and services not previously regulated by the department. Through registration, regulation, and oversight of these financial products and services, DFPI supports a healthy and trusted financial marketplace.
In 2020, the California State Legislature passed the
California Consumer Financial Protection Law (CCFPL)
as AB 1864 (Limón). Identifying gaps in consumer protection due to strict definitions in existing licensing laws, this law provided the DFPI with the appropriate authority to oversee areas of the financial marketplace previously unregulated in California, including debt settlement and debt relief services, private postsecondary education financing products, and income-based advance products.
On January 1, 2026, a new law,
SB 825,
went into effect that helps strengthen protection for California consumers. This law clarifies that DFPI licensees otherwise exempt from the California Consumer Financial Protection Law (“CCFPL”), including banks, mortgage lenders, escrow agents, brokers, and other DFPI-regulated entities, will not be exempt from section 90003 of the CCFPL when they engage in unlawful, unfair, deceptive, or abusive acts or practices with respect to consumer financial services or products.
The Supervision and Registration of New Covered Persons program is responsible for supervising and regulating providers of these financial activities, including investigating claims of unlawful, unfair, deceptive, and abusive acts or practices.
Who Are Covered Persons?
“Covered persons” refers to any person offering or providing consumer financial products and services to California residents subject to the CCFPL.
These include, but are not limited to, persons offering or providing:
Debt Settlement Services
Income-Based Advances
Private Postsecondary Education Financing
Student Debt Relief Services
For a full list of consumer financial products and services subject to the CCFPL, please refer to
California Financial Code Section 90005 subdivision (k)
.
Registration
With the approval of DFPI’s first
registration regulations
in October 2024 by the Office of Administrative Law, the DFPI will now require providers of the following financial products and services to register and submit data to the Department:
Debt Settlement Services
Student Debt Relief Services
Postsecondary Education Financing
Income-Based Advances (also known as “earned wage access”)
To determine whether your business falls under one of these categories, please refer to the definitions in sections 1001 – 1004 and exemptions in section 1010 of the
regulations
. The Department encourages you to seek legal advice if you are unsure whether the rulemaking applies to your business.
DFPI began accepting CCFPL registration applications on November 1, 2024. Effective
February 15, 2025
, financial service providers covered by the new registration regulations are required to hold an approved registration or have filed an application for registration prior to the effective date to continue operating legally in the state. Registration will provide valuable data and insights to help inform changes to consumer protection laws and regulations in the future.
Visit
California Consumer Financing Protection law Information for New Registrants
for more information.
To receive ongoing updates about current or future registration requirements under the CCFPL,
subscribe
and choose all notifications for the category “NCP.”
CCFPL Commercial Financing Annual Report Information
On August 2, 2023, the Office of Administrative Law (OAL) approved regulations under the CCFPL concerning the offering and provision of commercial financing and other financial products and services to small businesses, nonprofits, and family farms. The new rules require annual reporting of commercial financing activity.
Learn more about the annual reporting requirements
.
References And Additional Information:
Assembly Bill 1864
: California Consumer Financial Protection Law (CCFPL)
Senate Bill 825
: Consumers financial protection
California Consumer Financial Protection Law
: Regulations, Legislation, Opinions, and Releases
California’s Legislature Approves Consumer Protection Bills
(American Banker, September 1, 2020)
California Lawmakers Approve Budget Proposal to Create Financial Watchdog for Consumers
(Consumer Reports, September 1, 2020)
California Seeks New Fintech Regulation in Agency Overhaul
(Bloomberg, January 10, 2020)
News & Info Links
Newsroom
Press Releases
Monthly Bulletins
Important Notices
How to reach us:
Department of Financial Protection and Innovation
Attn: Supervision and Registration of New Covered Persons Program
651 Bannon Street, Suite 300
Sacramento, CA 95811
Phone: (866) 275-2677
Email:
[email protected]
Updated:
December 31, 2025
Skip to Main Content
Covered Persons
The California Consumer Financial Protection Law expanded DFPI oversight to include financial products and services not previously regulated by the department. Through registration, regulation, and oversight of these financial products and services, DFPI supports a healthy and trusted financial marketplace.
In 2020, the California State Legislature passed the
California Consumer Financial Protection Law (CCFPL)
as AB 1864 (Limón). Identifying gaps in consumer protection due to strict definitions in existing licensing laws, this law provided the DFPI with the appropriate authority to oversee areas of the financial marketplace previously unregulated in California, including debt settlement and debt relief services, private postsecondary education financing products, and income-based advance products.
On January 1, 2026, a new law,
SB 825,
went into effect that helps strengthen protection for California consumers. This law clarifies that DFPI licensees otherwise exempt from the California Consumer Financial Protection Law (“CCFPL”), including banks, mortgage lenders, escrow agents, brokers, and other DFPI-regulated entities, will not be exempt from section 90003 of the CCFPL when they engage in unlawful, unfair, deceptive, or abusive acts or practices with respect to consumer financial services or products.
The Supervision and Registration of New Covered Persons program is responsible for supervising and regulating providers of these financial activities, including investigating claims of unlawful, unfair, deceptive, and abusive acts or practices.
Who Are Covered Persons?
“Covered persons” refers to any person offering or providing consumer financial products and services to California residents subject to the CCFPL.
These include, but are not limited to, persons offering or providing:
Debt Settlement Services
Income-Based Advances
Private Postsecondary Education Financing
Student Debt Relief Services
For a full list of consumer financial products and services subject to the CCFPL, please refer to
California Financial Code Section 90005 subdivision (k)
.
Registration
With the approval of DFPI’s first
registration regulations
in October 2024 by the Office of Administrative Law, the DFPI will now require providers of the following financial products and services to register and submit data to the Department:
Debt Settlement Services
Student Debt Relief Services
Postsecondary Education Financing
Income-Based Advances (also known as “earned wage access”)
To determine whether your business falls under one of these categories, please refer to the definitions in sections 1001 – 1004 and exemptions in section 1010 of the
regulations
. The Department encourages you to seek legal advice if you are unsure whether the rulemaking applies to your business.
DFPI began accepting CCFPL registration applications on November 1, 2024. Effective
February 15, 2025
, financial service providers covered by the new registration regulations are required to hold an approved registration or have filed an application for registration prior to the effective date to continue operating legally in the state. Registration will provide valuable data and insights to help inform changes to consumer protection laws and regulations in the future.
Visit
California Consumer Financing Protection law Information for New Registrants
for more information.
To receive ongoing updates about current or future registration requirements under the CCFPL,
subscribe
and choose all notifications for the category “NCP.”
CCFPL Commercial Financing Annual Report Information
On August 2, 2023, the Office of Administrative Law (OAL) approved regulations under the CCFPL concerning the offering and provision of commercial financing and other financial products and services to small businesses, nonprofits, and family farms. The new rules require annual reporting of commercial financing activity.
Learn more about the annual reporting requirements
.
References And Additional Information:
Assembly Bill 1864
: California Consumer Financial Protection Law (CCFPL)
Senate Bill 825
: Consumers financial protection
California Consumer Financial Protection Law
: Regulations, Legislation, Opinions, and Releases
California’s Legislature Approves Consumer Protection Bills
(American Banker, September 1, 2020)
California Lawmakers Approve Budget Proposal to Create Financial Watchdog for Consumers
(Consumer Reports, September 1, 2020)
California Seeks New Fintech Regulation in Agency Overhaul
(Bloomberg, January 10, 2020)
News & Info Links
Newsroom
Press Releases
Monthly Bulletins
Important Notices
How to reach us:
Department of Financial Protection and Innovation
Attn: Supervision and Registration of New Covered Persons Program
651 Bannon Street, Suite 300
Sacramento, CA 95811
Phone: (866) 275-2677
Email:
[email protected]
Updated:
December 31, 2025