The bill also proposes to repeal a long-standing requirement for the commissioner to submit a report on the implementation of the California Deferred Deposit Transaction Law, which was originally due in December 2007. By removing this reporting clause, the measure could potentially streamline regulatory oversight and reduce the administrative burden on the Department of Financial Protection and Innovation, although it may limit legislative insight into the evolving trends within the deferred deposit market.
Summary
Assembly Bill 1507 focuses on amending provisions within the Financial Code that relate to the regulation of money transmission businesses and the deferred deposit transaction industry in California. Specifically, it seeks to update the notice requirements for money transmission businesses, mandating that they post clear contact information for the California Department of Financial Protection and Innovation within their branch offices. This information will help consumers who have complaints regarding money transmission services to easily reach out for assistance.
Contention
While the bill is primarily aimed at simplifying requirements for money transmission businesses, there may be concerns among advocacy groups regarding consumer protection. The repeal of the reporting requirement might lead to a lack of accountability in how deferred deposit transactions are handled, potentially leaving consumers without critical information regarding the industry's practices and its growth trends. Consequently, discussions may emerge around balancing regulatory reduction with the necessity for consumer safeguards in financial transactions.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.