Banking and Finance Law Daily Wrap Up, COMMUNITY DEVELOPMENT—San Diego County considers establishing consumer protection unit, (Mar 23, 2026)
Organizations Mentioned:Consumer Financial Protection Bureau
By Nora Macaluso
The effort would be funded with money from consumer protection settlements.
The San Diego County Board of Supervisors will consider a plan to establish a consumer fairness and public protection unit that would crack down on hidden fees and unfair practices, saying the federal government “has given up on protecting the public.”
“Environmental contamination, bad-faith health insurance denials, and corporate practices that break the rules are compounding everyday costs for families and small businesses alike,” Supervisor Terra Lawson-Remer said in an agenda item for the board’s March 24 meeting. “Hidden fees, predatory financial practices, unlawful debt collection, deceptive business conduct, and unfair housing practices are quietly draining household budgets.”
Fees like overdraft charges, deceptive loans, and unlawfully denied medical claims act as an “unfairness tax” that raises the cost of living for residents, Lawson-Remer said.
Trump administration actions, particularly the “gutting” of the Consumer Financial Protection Bureau, leave a “widening vacuum in consumer and civil law enforcement,” the notice said.
The Consumer Fairness and Public Protection Unit would be part of the Office of County Counsel, and would complement the work of the California Attorney General, San Diego County District Attorney, city attorneys, other state and federal regulators, and nonprofit organizations, according to the notice. It would include a “mediation and early resolution function” that would allow the county to deal with businesses directly.
The new unit would be funded using existing consumer protection settlement funds, starting with the appropriation of $2.4 million currently held in the Consumer Fraud Trust Fund. It would be structured as a “revolving enforcement and recovery fund” relying on penalties and settlements secured through enforcement, according to Lawson-Remer.
“Experience from similar units shows they can generate public dollars through enforcement fines and settlements,” the notice says. Settlement funds of $30 million would support the first five years of operations.
The plan includes the establishment of formal partnerships with accredited law schools to support the unit’s work. An annual report to the board would detail enforcement activity, restitution, injunctive relief, and other efforts.
Comments. Several comments were submitted on the proposal. Business for Good San Diego, a local business chamber, expressed support for the proposal, saying it “represents a timely and necessary response” to the challenges of deceptive and predatory practices.
“Establishing a dedicated County-based civil enforcement and affirmative litigation unit will allow San Diego County to proactively address systemic misconduct, recover restitution for harmed residents, and deter repeat offenders while also promoting fair competition for law-abiding businesses,” the group said in a letter to the board.
LegislativeActivity: CaliforniaNews CommunityDevelopment