January 2022

$10M Budget Proposal Would Help Student Borrowers

This month, Gov. Gavin Newsom announced a $10 million budget proposal to educate, assist, and empower student loan borrowers. If approved, the Department of Financial Protection and Innovation (DFPI) will use these funds to establish a statewide communications campaign and grant program. The communications campaign would inform student borrowers of their rights and options, including when to ask for income-driven repayment and how public service workers can apply for the Public Service Loan Forgiveness (PSLF) Waiver.

Conquer Your Holiday Debt

Create a plan to pay off all that holiday shopping debt. Use the “snowball” or “avalanche” approach and enjoy watching your finances improve.

• Snowball approach: focus on paying off your smallest balance first while making minimum payments on the rest. Once the smallest balance is paid off, roll the money you were paying into the next balance.
• Avalanche approach: focus on paying off your highest interest debt, while making minimum payments on the rest.

To lower your interest fees while you pay your debt, consider if a balance transfer or debt consolidation loan could help you. If you are experiencing issues with a debt collector, contact our consumer services office at 1–866-275-2677 or Ask.DFPI@dfpi.ca.gov.

DFPI Spurs Participation in National Mortgage Relief Program

The DFPI helped increase mortgage servicer participation in the California Mortgage Relief Program, connecting more homeowners to help during the pandemic. The California Mortgage Relief Program is part of California’s Housing is Key program and is designed to work with several state and federal initiatives and programs to support residents facing difficulties because of the COVID-19 pandemic. Read more about how we worked with mortgage servicers to ensure participation in the historic program.

LA Rent-to-Own Startup Agrees to Refund Overcharges and Comply

In its first action against a rent-to-own firm violating the California Consumer Financial Protection Law, the DFPI finalized a settlement with Los Angeles-based rent-to-own furniture provider Fernished.

Based on the DFPI’s investigation, they found that Fernish overcharged consumers late payment fees and failed to provide consumer disclosures required under California’s rent-to-own law in violation of the consumer protection law. Read more about this news.

LoanMart Agrees to Temporarily End High-Interest Rate Loans

The DFPI reached an agreement with LoanMart to prohibit the company from marketing or servicing title loans of less than $10,000 with rates greater than 36 percent in California for the next twenty-one months.

Last year, the DFPI launched an investigation to assess whether LoanMart was evading California’s newly enacted interest rate caps through a partnership with an out-of-state bank. Read more about this news.

Consumer Alert: Website Fraudulently Posing as Broker-Dealer

The DFPI has received information that the website yosemite-ep.com is fraudulently posing as Seedchange Execution Services, Inc., a California licensed Broker-Dealer. This is the third time that the website address has changed to continue its fraudulent activity. Read more and keep up to date on this consumer alert. To check whether an investment or financial service provider is licensed in California, or to file a complaint, consumers should contact the DFPI at ask.dfpi@dfpi.ca.gov or call (866) 275-2677.

Career Opportunities with DFPI

The DFPI is California’s primary regulatory authority overseeing financial services, products, and professionals. Its mission includes protecting consumers from potential abusive, deceptive, and unfair practices.

If you are passionate about wanting to make a difference in protecting consumers from financial fraud, join our team! Find out more about available positions on the DFPI’s Careers webpage.