Governor Newsom Signs Blockchain Executive Order
Governor Gavin Newsom announced on May 4 an executive order to foster responsible innovation, bolster California’s innovation economy, and protect consumers. It aims to create a transparent regulatory and business environment for web3 companies which harmonizes federal and California approaches, balances the benefits and risks to consumers, and incorporates California values such as equity, inclusivity, and environmental protection.
Under this executive order, and pursuant to the California Consumer Financial Protection Law passed by the Legislature in 2020, California will begin the process of creating a regulatory approach to spur responsible innovation while protecting California consumers, assess how to deploy blockchain technology for state and public institutions, and build research and workforce development pathways to prepare Californians for success in this industry.
The order directs the DFPI and other state agencies to engage in a public process and exercise statutory authority to develop a comprehensive regulatory approach to crypto assets harmonized with the direction of federal regulations and guidance, creating consumer protections, and solidifying California’s status as the premiere global location for responsible crypto asset companies to start and grow. The order sets California on a path to harmonize with forthcoming federal rules and guidelines, to create regulatory clarity for businesses and protect consumers.
A burgeoning industry, crypto assets and blockchain technology surpassed a $3 trillion market cap last November, up from $14 billion just five years prior. According to research, roughly 16 percent of adults have invested in, traded, or used cryptocurrencies. As of April 22, late-stage post-money valuations for venture capital-backed blockchain and crypto asset companies have increased on average 91 percent to $3.95 billion.
If you have questions about the executive order, contact Belinda Alcala in the DFPI Office of Financial Technology Innovation at belinda.alcala@dfpi.ca.gov.
|
|
DFPI Seeks Public Comment on Oversight of Crypto Asset-Related Financial Products and Services
The DFPI has issued an Invitation for Comments on proposed rulemaking to seek input from stakeholders and the public in developing guidance and, as appropriate, regulatory clarity and supervision of covered persons and service providers involved in the offering and provision of crypto asset-related financial products and services in California. For more information, read the Press Release or visit the Invitation for Comments Webpage. Comments may be submitted electronically to regulations@dfpi.ca.gov. Please include “Invitation for Comments – Crypto Asset-Related Financial Products and Services” in the subject line. The comment submission deadline is August 5, 2022.
|
|
Upcoming Events
For more information about DFPI’s Education & Outreach programs, events calendar, and other consumer protection resources, please visit the DFPI Education & Outreach Webpage. Recordings of select events can also be viewed on the DFPI YouTube Channel.
| Date/Time |
Event |
June 8, 2022
10:00am–12:00pm |
Bet Tzedek World Elder Abuse Awareness Day Symposium
Featured panelists will discuss strategy, strength, and security to combat elder abuse. For details and to register, visit the Bet Tzedek World Elder Abuse Awareness Day Symposium Registration Webpage. To register by phone, contact Alisa Anderson at (323) 549-5810. |
June 10, 2022
10:00am |
Senior Scam Stopper
Senior Scam Stopper with the DFPI, Contractors State License Board, and Office of Senator Dave Min (SD37). To RSVP or for more information call (940) 223-5472. |
June 10, 2022
10:00am |
Senior Scam Stopper
Senior Scam Stopper with the DFPI, Contractors State License Board, and Office Assemblymember Anthony Rendon (AD63). For more information call (562) 529-3250. |
June 14, 2022
See registration webpage for details |
World Elder Abuse Awareness Day Global Summit
This event is open to national and international policy makers, advocates, financial institutions, media, social services organizations, victims, and anyone interested in the growing problem of elder abuse. To register, visit the 2022 World Elder Abuse Awareness Day Global Summit Registration Webpage. For more information, contact Julie Murawski of the National Adult Protective Services Association (NAPSA) at julie.murawski@napsa-now.org or (202) 370-6292. |
June 15, 2022
12:00pm |
Don't Try to Predict the Stock Market Webinar
Don’t get caught up in fancy investing schemes and meme stocks. Learn about the tried-and-true approaches to investing in the stock market. Hosted by the U.S. Department of Veterans Affairs, presentation provided by Pruco Securities, LLC, a Prudential Financial Company. To register, visit the Don’t Try to Predict the Stock Market Webinar Registration Webpage. |
|
|
|
Blockchain, Crypto Assets... Say What?
In May, California became one of the first U.S. states to embrace the creation of a regulatory framework for blockchain technologies and crypto financial assets. The DFPI is responsible for regulating California’s financial services and has authority to oversee the state’s crypto industry. DFPI’s Office of Financial Technology Innovation (OFTI) was created in 2020 under the California Consumer Financial Protection Law to help consumers, entrepreneurs, financial tech innovators, advocates, and others navigate this fast-growing industry and its constantly evolving products, services, and technology innovations. OFTI offers several resources to help demystify the crypto industry. They host weekly virtual Office Hours every Tuesday from 9–10 a.m. PT. The public is welcome to join and ask questions. To register, visit the OFTI Office Hours Registration Webpage. OFTI provides tips on how to understand the risks associated with crypto assets and Consumer Alerts identifying companies that may be engaging in unlicensed activity or falsely advertising cryptocurrency products and services. If you are having a problem with a crypto product or service, you can also File a Complaint. For additional information, visit the OFTI Crypto Assets Webpage or email your questions to OFTI@dfpi.ca.gov or use their Online Contact Form.
|
|
|
Romance Scams and Crypto Assets – Fact or Fraud?
Now more than ever, people are looking for relationships on dating apps and social media sites. Unfortunately, some criminals see this trend as an opportunity to scam people out of their money. Not only are dating apps very popular, but so are crypto assets, and criminals have found a way to turn the typical romance scam into cyber fraud by developing a fake dating profile, falsely developing an online relationship, and when the time is right, creating an urgent request for money via gift cards, prepaid debit cards, or crypto assets. For more information and tips on how to protect yourself, read the DFPI Consumer Alert, Romance Scams and Crypto Assets – Fact or Fraud?
|
|
|
World Elder Abuse Awareness Day
World Elder Abuse Awareness Day (WEAAD) is commemorated each year on June 15. The purpose of WEAAD is to provide an opportunity for communities around the world to promote a better understanding of abuse and neglect of older persons. You can participate by attending one of the many conferences held every year at this time to raise awareness for and encourage prevention of elder abuse. For more information and resources, visit the National Center for Elder Abuse (NCEA) Website or call (855) 500-3537. If you think you have witnessed or experienced elder abuse, you can file a complaint on the NCEA Reporting Abuse Webpage.
5 things you can do to prevent elder abuse and neglect:
- Learn the signs of elder abuse how to report it.
- Prevent isolation by calling or visiting your older loved ones regularly and asking how they are doing.
- Talk to friends and family members about elder abuse and how to reduce risks associated with services like homecare, law enforcement, community centers, and public transportation.
- Sign up to be a friendly visitor to an older person in your community.
- Send a letter to a local paper, radio, or TV station asking to promote World Elder Abuse Awareness Day (June 15) or Grandparents Day (first Sunday in September).
|
|
|
June is National Homeownership Month
National Homeownership Month is celebrated each year in June to remind consumers about the benefits of owning a home as well as an opportunity to provide information and resources that support homeownership. Every person deserves the chance to live with security, dignity, and hope in a place they can call home. Keeping Californians in their homes is a priority for the state and state agencies are working hard across the state to advance affordable homeownership opportunities, particularly in communities of color and other underserved communities. In April, the California Housing and Finance Agency (CalHFA) and California Department of Housing and Community Development (HCD) announced two new programs to help California first-time homebuyers:
- Forgivable Equity Builder Loan Program (CalHFA) - Allows first-time homebuyers to borrow a down payment at a 0% interest rate. The program provides forgivable loans to homebuyers for up to 10% of the home’s purchase price. Loans are available through CalHFA's network of approved lenders, which operates in every California county. For more information about the applications process or how to qualify, contact a Preferred Loan Officer.
- CalHome Awards Program (HCD) - Provides grants to local public agencies and nonprofit corporations for first-time homebuyer down payment assistance, housing rehabilitation assistance, homebuyer counseling, and technical assistance to enable low- and very low-income households become or remain homeowners.
You can find additional mortage assistance and homeowner resources here:
|
|
|
How to Avoid Mortgage Assistance Scams
The mortgage moratorium, which allowed homeowners to place their mortgages in forbearance under the CARES Act, ended July 31, 2021. Still, many homeowners are looking to get their mortgage payments caught up or are seeking modifications, refinancing, or mortgage assistance to stay in their homes. For mortgage assistance, you should always contact your mortgage lender first for options.
Recognize these warning signs for mortgage assistance and real estate scams:
- Licensed Lenders/Escrow Agents – Receiving an email, phone call, or text from someone claiming to be from your title or escrow company with instructions on where to wire your escrow funds. Fraudsters set up fake websites that appear similar to the title or lending company you’re working with, making it seem like the real deal.
- Upfront/Advance Fees – Offering guarantees to help but ask for upfront/advance fees for mortgage relief.
- Home Mortgage Scams – Be wary of hidden fees and undisclosed rates.
- Home Inspection Scams – Offering free home inspections that are a ploy to get inside your home.
- Loan Flipping/Predatory Lenders – Persuading you to refinance your mortgage repeatedly, often borrowing more money each time, charging high fees and points with each transaction, and homeowners get stuck with higher loan payments they can’t afford after being duped into borrowing most of their home’s equity.
- Fake Real Estate/Rental Listings – Scammers post property rental ads on Craigslist or social media pages to lure in unsuspecting renters, often using photos from other listings.
To report illegal activity, file a complaint with the California Department of Real Estate (DRE).
|
|
|
PACE/HERO Programs for Home Improvement Financing
Are you thinking about taking on a home improvement project or installing solar panels with financing through the Property Assessed Clean Energy (PACE) Program or HERO Program? The DFPI licenses PACE Program Administrators and regulates the PACE industry. PACE and HERO are not free government programs. Homeowners must pay back the funding through their annual property tax. Do your research before entering into any financial agreements. Some warning signs to look out for are misrepresented costs or omitted information, such as claiming no money down or no out-of-pocket costs, giving the impression that all services are free. Many homeowners, including seniors and other targeted ethnic groups, were unaware they were signing up for loans, entered into financing agreements, and are now struggling with doubled or tripled property tax payments and are at risk of losing their homes. Some were even left with incomplete or unpermitted work. Before obtaining financing through one of these programs, contact a trusted broker/lender or visit the PACE Program Webpage to learn about the risks and get answers to common questions. And before hiring a contractor, be sure to verify the contractor’s license with the Contractor’s State License Board.
|
|
|
Contractor’s State License Board Helps Consumers with Solar Energy System Restitution Program
The Contractors State License Board (CSLB), the government agency charged with protecting consumers and licensing and regulating solar contractors in California, announced in May a Solar Energy System Restitution Program (SESRP) which offers compensation to qualifying consumers who were defrauded or financially harmed from an installation of a solar system by a licensed or unlicensed solar contractor. For details regarding eligibility or how to file a claim, visit the SESRP Webpage.
|
|
|
National Higher Education Day
The federal government signed the Higher Education Act in 1965. The main purpose of this act was to improve higher education programs at U.S. educational institutions and offer monetary assistance to students who are unable to afford their college fees. National Higher Education Day is celebrated on June 6 every year to recognize the importance of education in improving our careers and livelihood. Take some time on this day to plan for higher education and research career choices and scholarships.
|
|
|
Some Student Loans Are in Line for Relief – What You Need to Know
There’s been a lot of good news recently for people weighed down by federal student loan debt. First, the Biden administration extended a moratorium on federal student loan payments and interest charges through August. Then, the U.S. Department of Education announced that it was reviewing payment records to give borrowers more credit for the progress they’ve been making toward loan forgiveness. The latest changes apply to borrowers enrolled in an income-driven repayment plan, which reduces loan payments for lower-income borrowers. An income-driven repayment plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size. To learn more, read Some student loans are in line for relief. What’s happening and what you should do now.
|
|
|
FAFSA – What to Do If Your Financial Situation Has Changed
June 30 is the final date to file a Federal Student Aid (FAFSA) form for the 2021-2022 school year. Although, the earlier you apply the better as the FAFSA helps determine eligibility for student financial aid. States and colleges may have their own deadlines; look yours up on the Federal Student Aid Website. Many FAFSA applicants have experienced recent financial changes due to the COVID-19 pandemic or other reasons. Has your (or your family’s) financial situation changed from what is reflected on your federal income tax return? If so, you may be eligible to have your FAFSA form adjusted to qualify for additional aid. Financial aid offices can adjust your financial aid award to reflect your or your family’s current income. To learn more, read COVID-19 Emergency and the FAFSA Process.
|
|
|
Insurance – Know Your Coverages and Providers
Insurance is one of those things we forget about until we need it. From car insurance to life insurance, to home insurance and more, insurance policies offer a layer of protection to guard us from unforeseen events that can cause financial losses to our family. National Insurance Awareness Day (June 28) was created to encourage us to go over our insurance plans at the very least once per year.
Some common insurance scams to look out for are:
- Annuity Twisting – Agents encourage clients to exchange an annuity from one company for an investment from another company. The second investment is worth less and the client will face costly surrender charges from the old policy. Agents pushing the new policy then walk away with a large commission.
- Annuity Churning – Agents convince annuity owners to trade one annuity policy for another one from the same company. Clients may owe additional premiums or lose value on the policy they previously owned. The agent then collects a commission from selling a different policy.
- Premium Theft – Agents request the customer to make a premium check payable to the agent or the agent's company rather than to the company that issues the insurance policy, such as an annuity or life insurance company, then the agent keeps the money.
- Excessive Fees – Pay attention to the amount of maintenance and bonus fees paid to an agent or broker or exorbitant surrender charges.
- Staged Auto Accident Fraud – Criminals often target new, rental, or commercial vehicles because they tend to be well-insured as well as women driving alone and senior citizens, as they are thought to be less confrontational at accident schemes.
The California Department of Insurance (CDI) is the consumer protection agency for the nation's largest insurance marketplace and safeguards consumers by fairly regulating the insurance industry. If you have questions about insurance or want to check the status of your agent or broker, visit the California Department of Insurance Website or call (800) 927-4357. If you have been a victim of an insurance scam or theft, you can file a complaint on CDI’s Getting Help Webpage.
|
|
|
California COVID-19 Guidelines Update
Employee Wellbeing Month is celebrated each year in June to emphasize that professional wellness is a key factor in ensuring the overall health and resilience of an organization and our communities at large. As California’s COVID-19 restrictions ease and we return more frequently to in-person settings for work, school, and entertainment, it is up to all of us to keep ourselves safe and protect others. In May, the California Department of Health and Human Services (CalHHS) and California Department of Public Health (CDPH) released updated information about how to prevent infection and serious illness, especially in lieu of rising cases related to the Omicron variants. Vaccines, masking, testing, ventilation, and treatments all play an important role in keeping us all healthy. Learn more by visiting the CalHHS COVID-19 Toolkit Webpage or the California for All SMARTER Steps Webpage. You can also sign-up to receive email updates on California COVID-19 guidance and policies on the CDPH COVID-19 Policy Alerts Registration Webpage.
|
|
|
Protect Yourself from Phishing Emails
The second week of June (June 12-19) is National Email Week. It was established to remind all of us that it is a good personal and professional practice to at least once per year clear out old emails and better organize the ones you need to keep. It is also a good time to refresh your understanding of email-based scams and how to protect yourself from email scammers. With billions of emails being sent every day worldwide, scammers know that they can take advantage of consumers in “phishing” schemes. Phishing emails are often carefully crafted to look as if they've been sent from a legitimate organization such as an internet service provider, bank, or mortgage company. These emails attempt to fool you into visiting a bogus website to either download malware (viruses and other software intended to compromise your computer) or reveal sensitive personal and/or financial information. If you get a suspicious email that looks like it might be a phishing scam, don’t answer the email, click on any links, or open any attachments. You are encouraged to report the message but be sure to delete it afterwards. For more tips on how to avoid phishing scams, visit the Federal Trade Commission’s (FTC) How to Recognize and Avoid Phishing Scams Webpage. You can report phishing emails to the Anti-Phishing Working Group at reportphishing@apwg.org or to the FTC at ReportFraud.ftc.gov.
|
|
|
Dump the Pump – Ways to Save Money on Gas
National Dump the Pump Day is June 17, which was established to encourage commuters to forego their cars by using public transportation and help consumers save time and money on gas. With today’s rising gas prices, it’s more important than ever to keep on budget with simple comparison shopping and common-sense lifestyle changes. Gas apps, like GasBuddy and Gas Guru, are useful tools for finding the cheapest gas available in your area. For more information about gas apps, read 10 Gas Apps to Save You Money. Another way to save money at the pump is to lower your overall gas usage by changing your driving habits such as taking public transit, driving less or taking fewer trips, slowing down, reducing idling, and ride sharing. For more ideas on how to “Dump the Pump,” read How to Save Money on Gas: 20 Simple Ways to Save.
|
|
|
|
DFPI Shares Success in Implementation of New Consumer Protection Law
As part of the implementation of one of the most expansive consumer protection laws in the country, Commissioner Cloey Hewlett testified on May 4 to a joint hearing of the State Senate Banking and Financial Institutions Committee and Assembly Banking and Finance Committee. Commissioner Hewlett was joined by Chief Deputy Commissioner Chris Shultz, Senior Deputy Commissioner Suzanne Martindale, and Deputy Commissioner Christina Tetreault, head of the DFPI Office of Financial Technology Innovation.
The report to the Legislature is required as part of the California Consumer Financial Protection Law (CCFPL), effective as of January 1, 2021. The first year of operation resulted in the DFPI collecting close to $1 million in restitution for consumers, fielding hundreds of additional complaints related to the law, and launching more than 100 investigations using its expanded authority under the CCFPL. To accompany the testimony, the DFPI released the 2021 CCFPL Annual Report on March 23 summarizing DFPI’s activities during its first year including major enforcement actions, consumer complaint statistics, and communications, and outreach metrics.
|
|
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.
|
|
|
Did you know?
- If you were defrauded and used Western Union or Money Gram to send money to a scammer between January 1, 2004 and January 19, 2017, you have until July 1, 2022, to file a claim and get a refund. For more information, read Did you use Western Union to pay a scammer?
- June 19, also known as Juneteenth, is a new federal holiday celebrating the freedom of African Americans from slavery in the U.S. Juneteenth is made up from the words ‘June’ and ‘nineteenth’ and on this day in 1865 Major General Gordon Granger arrived in Texas to inform slaves that slavery had been abolished. Juneteenth became a legal federal holiday in 2021. This year, Juneteenth will be observed on Monday, June 20, and federal offices will be closed.
|
|
|
Contact Us
- Do you have any questions or comments about the Consumer Connection newsletter?
- Would you like to promote your organization’s programs and events in our newsletter?
- Would you like to make a request for a DFPI outreach professional to present at your event?
The DFPI Education & Outreach team is eager to hear from you. Please contact us at Outreach@dfpi.ca.gov.
For more information about DFPI’s Education & Outreach programs, events calendar, and other consumer protection resources, please visit the DFPI Education & Outreach Webpage.
|
|
Do you like our newsletter?
|
|
|
|
|
