Consumer Financial Protections
Kat is dedicated to strengthening consumer protections and was a driver in statewide efforts to restructure and revamp California’s Department of Business Oversight (DBO) into the Department of Financial Protection and Innovation (DFPI). She fought alongside consumer finance advocates like Richard Cordray, former federal director of the Consumer Financial Protection Bureau (CFPB), to establish the California Consumer Financial Protection Law (CCFPL) though which the DFPI was implemented.
No response to the COVID-19 pandemic’s economic fallout is complete or comprehensive without protecting our most vulnerable populations from financial predators who keep families and individuals locked in spiraling cycles of poverty and debt. California, the fifth-largest economy in the world, requires a strong financial regulator that will protect its people and enable all to build wealth and equity. We now have that regulator.
This action will ensure that vulnerable Californians have an ally in their corner against financial predators as economic uncertainty and predatory lending skyrocket in the aftermath of the pandemic
In September 2020, the California Student Borrower Bill of Rights (AB 376) was signed into law, as part of a package of consumer protection legislation. Kat was an integral supporter of this legislative package of bills, which included establishing the Department of Financial Protection and Innovation (AB1864). Aligned with Kat and the bank’s priorities of keeping harmful money out of all elements of the financial system, The Student Borrower Bill of Rights gave the DFPI the ability to regulate student loan servicers who were previously exempted from California’s student loan servicer licensing law. Protecting students from predatory high-interest rate loans, and providing them the means to protect themselves legally, was a huge step in the right direction for ensuring students of all ages have a chance at economic success and financial stability.
Related Legislative Materials