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The DFPI Consumer Connection | July 2022



National Military Consumer Protection Month 

Americans come together on July 4th to celebrate Independence Day. It is also a time to recognize the contributions of those who have helped secure America’s freedom and build our country into the nation it is today, which include our military service members and veterans. July is designated as National Military Consumer Protection Month. This annual event was first launched in 2013 as Military Consumer Protection Day by the Federal Trade Commission (FTC) to raise awareness about identity theft crimes impacting servicemembers.

Now, it's become a national month-long campaign to highlight and promote free financial resources that can help servicemembers, military families, and veterans manage their money and protect their credit. National Military Consumer Protection Month is a joint initiative by federal and state agencies, consumer advocates, and military support groups from around the country. For military and veteran financial management information and tips to avoid scams and fraud, visit the FTC Military Consumer Website. Additional resources can be found on the DFPI Information for Military Service Members Webpage.


July is a Great Time to Hire a Veteran 


July is a great time to not only celebrate our country’s Independence Day, but also to recognize and support veterans with their employment needs. National Hire a Veteran Day (July 25) was established in 2017 and founded by Dan Caporale, Marine Corps Veteran and founder of Hire Our Heroes. This special day is set aside to raise awareness of civilian employment for transitioning service members and veterans after their military service. It is also a call to action for those who hire and those who apply.  
The following online career resources specialize in assisting the military and veteran community with employment search, job training, and other career development services:   

Below is a select listing of military and veteran employment events being offered across California in July:

Date & Time Event
July 13
12:00–2:00pm

Federal Employment: Where to Begin Webinar 

Learn about the federal employment process, how to create a job seeker profile, and begin a federal resume. Hosted by Hire Heroes USA. Register on the Federal Employment: Where to Begin Webinar Registration Webpage

July 15
1:00–2:00pm

Veteran Sacramento Virtual Job Fair 

This is a free virtual job fair in Sacramento, CA sponsored by HireX. Register on the Veteran Sacramento Virtual Job Fair Registration Webpage

July 19
1:00–2:00pm

Employer Spotlight: Amazon Web Services Skillbridge & Apprenticeships Webinar 

Learn from subject matter experts about transitioning into cloud computing careers through the apprenticeship programs at Amazon Web Services. Sponsored by Hire Heroes USA and Amazon. Register on the Employer Spotlight: Amazon Web Services Webinar Registration Webpage

July 29
In-Person 11:00am–1:00pm

Virtual 3:00–5:00pm

Naval Base San Diego Hiring Event 

This is a hybrid job fair featuring in-person and virtual opportunities to meet directly with employers seeking to hire veterans, transitioning active service members, reservists, and their families. Sponsored by Hire G.I. and Honeywell. Register on the Naval Base San Diego Hiring Event Registration Webpage

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
July 7
2:00pm 
Protect Yourself From Fraud

Learn from representatives from the DFPI, hosted in partnership with NEXT Village San Francisco. This is a virtual event. Register on the NextVillageSF Registration Webpage. For more information, call (415) 574-0156.
July 9
9:00–11:00am 
Financial & Career Fair at the Mexican Consulate of Sacramento

The DFPI will have a resource table at Ventanilla de Asesoria Financiera (Financial Education Window). The financial and career fair will feature banking and financial resources, consulate services, and career opportunities. The event will be held outdoors at the Mexican Consulate of Sacramento, 2093 Arena Blvd, Sacramento, CA 95834. For more information, call (916) 329-3500.
July 11–12
8:00am–5:00pm
California Association of Mortgage Professionals (CAMP) Annual Convention 

CAMP’s leadership team is hosting their 32nd Annual Convention where a representative from the DFPI Escrow and Mortgage Lending Office will participate on the Regulatory and Compliance panel with HUD and DRE. For information, convention agenda, and registration, visit the CAMP Annual Convention Registration Webpage Webpage. 
July 12
10:00–11:00am
Protect Yourself from Fraud 

Learn from a representative from the DFPI, hosted in partnership with the Palos Verdes Library District in Rolling Hills Estates, CA. This is an in-person event, no RSVP required. For more information, call Jackie Hernandez at (310) 377-9584, ext. 217. 
July 20
5:00–7:30pm
Homebuyer Webinar 

Join the nonprofit HomeOwnership OC for a free online homebuyer workshop. Learn about how to access down payment assistance programs, first-time buyer loans, and FHA and VA loans as well as other aspects of the real estate process, including escrow, fair housing, and more. Earn your HUD Homebuyer Certificate. Seats are limited, register on the Homebuyer Webinar Registration Webpage.
August 10, 17, 24, & 31
12:00–1:00pm
Senior Scam Alert Webinar Series 

The DFPI has partnered with AARP California to host a 4-part series of Senior Scam Alert webinars in August. The Webinars will take a discussion style approach to address topics pertaining to financial scams and how to protect yourself. Watch for more information in our August Newsletter.
August 12
9:00–11:00am
Senior Scam Stopper

Senior Scam Stopper with the DFPI, Contractors State License Board, and Office Assemblymember Al Muratsuchi (AD 66). To RSVP or for more information call (310) 375-0691.
August 24
12:00–1:00pm
Student Loan Updates and Repayment Options Webinar

With student loan repayments set to start after August 31, get the latest news and updates in this free webinar and learn about the different repayment options available to borrowers. To register, visit the Student Loan Updates and Repayment Options Webinar Registration Webpage.
News & Updates


Applying for Jobs? Lookout for Employment Scams 

Not every job posting, or job recruiter is legit. Employment scams use enticing, and hard-to-detect, lures to target people looking for work. Learn how to spot the most common employment scams: 

  1. Some scammers take a slow approach with interviews and legitimate-seeming operations, then collect personal information from your employment forms or try to trick you into buying equipment or training.  

  1. Some scammers get right to the point and promise guaranteed or easy income if you purchase their program. Honest employers, including the federal government, will never ask you to pay to get a job. Anyone who does is a scammer. 

  1. Other scammers harvest contact information and personal details from résumés posted on legit job websites like Indeed, Monster, and CareerBuilder. Then, pretending to be recruiters, they call, email, text, or reach out on social media with high-salary or work-at-home job offers. Sometimes the goal is to get additional info about you; other times it’s to persuade you to send money for bogus home-office setups or fake fees. 

  1. Sometimes, a fake employer sends a large paycheck and asks you to send the "extra" back—a play on the popular overpayment scam. An honest potential employer will never send you a check and then tell you to send them part of the money. That’s a fake check scam

  1. Be wary of job opportunities that involve receiving money and sending funds to another account or receiving and reshipping packages. These "money mule" and "reshipping mule" jobs are often part of an illegal operation, and you could be personally liable. 

Before accepting a job offer or business opportunity, here are some tips to help you protect yourself from employment scams: 

  • Use a separate email address just for job hunting and set up a free Google Voice phone number that rings on your phone but keeps your real number private. 

  • Do an online search for the name of the company or the person who’s hiring you, plus the words “scam,” “review,” or “complaint.” You might find out they’ve scammed other people. 

  • If you get a job offer, independently call the company’s human resources department to verify it is real. 

  • Evaluate your options carefully before taking a swing at a money-making pitch. Talk to someone you trust. Describe the offer to them. What do they think? This also gives you vital time to think about the offer. 

  • Don’t believe website testimonials. Glowing stories of success could be fake or misleading. Overly positive online reviews may even come from made-up profiles. 

If you see or lose money to a job scam, you can report it on the Federal Trade Commission’s Report Fraud Website

Student Borrower Updates


New Resources for Student Loan Borrowers  

The DFPI hosted a Public Service Loan Forgiveness (PSLF) workshop webinar on May 31. If you missed the webinar, you can watch the recording on the DFPI YouTube Channel. If you think you have worked in jobs that qualify for the PSLF program, we strongly urge you to check the status of your loans and document any periods of public service employment since October 1, 2007, using the tools available to you on StudentAid.gov. Between now and October 31, the U.S. Department of Education is waiving some of the usual requirements for getting credit toward PSLF so long as you consolidate any older ineligible loans and document your public service employment history. By acting early, you gain valuable time to adjust your loans and to find out whether you are on track to qualify for the PSLF program before the waiver deadline on October 31, 2022. 

The next student loan borrower webinar, Student Loan Updates and Repayment Options, will be held on August 24 from 12pm to 1pm. With student loan repayments set to start after August 31, 2022, get the latest news and updates in this free webinar and learn about the different repayment options available to borrowers. The DFPI will host the event in partnership with the Consumer Financial Protection Bureau (CFPB) and the Student Borrower Protection Center (SBPC). To register, visit the Student Loan Updates and Repayment Options Webinar Registration Webpage

The following student loan borrower resources are available to help you manage your student loan debt, complete your PSLF paperwork, and prepare yourself for the restart of federal loan repayments:  


Student Loan Borrower Campaign Gains 2022-23 Budget Funding 

The California Legislature has approved $10 million in General Fund money for the DFPI to conduct a student loan borrower outreach campaign as part of the 2022-2023 Budget. 

  • $2.75 million will be dedicated to targeted public outreach to notify people with federal student loans about available resources and webinars to help them prepare for deadlines related to the repayment restart, Public Service Loan Forgiveness (PSLF) waiver program, and how to file student loan related complaints and inquiries. 

  • $7.25 million will be dedicated to creating a grant program to provide resources to community-based organizations that provide direct assistance to student loan borrowers. 

The California Legislature passed the budget proposal, Senate Bill 154, on June 13. Governor Newsom announced an agreement with the Legislature on the framework of the 2022-23 Budget and officially signed the bill into law on June 27. Although, negotiations with legislators regarding the numerous trailer bills will continue through the summer, no further changes are expected regarding funding for the Student Loan Borrower Campaign. In alignment with California’s efforts to support student loan borrowers, the Legislature is advancing two resolutions that will declare August 2022 as Student Debt Awareness Month. House Resolution 118 (Bonta), passed June 21, and Senate Resolution 96 (Limón) is still in committee.

Steer Clear of Student Loan Forgiveness Scams 

Ever since student loan forgiveness has been trending in the news, student loan fraud has been on the rise. Scammers may promise a fake loan forgiveness program, claim student loan forgiveness or forbearance in exchange for fees, or impersonate your loan servicer or a company authorized by the Department of Education by knowing private information, such as your loan balance or recent consolidation activity. This is fraud and none of these scenarios can get you into a forgiveness program you don’t qualify for or wipe out your loans. 

Follow these tips to steer clear of student loan forgiveness scams: 

  • There are programs to forgive federal student loans for specific borrowers. There are also instances where borrower’s may be eligible for student loan discharge. If you have questions about qualifying for federal loan forgiveness, contact your loan servicer. You can find out who your servicer is by logging in to your  Federal Student Aid Account or calling 1-800-433-3243. 

  • If a company is asking you to pay large amounts of money upfront, it is likely a scam. Do not give any money or personal information to the company. Contact your loan servicer to determine what options are available to you.   

  • Scammers might tell you that you only have 24 hours to take advantage of an offer or program. Most government-offered programs do not require this urgency. Confirm whether this is a legitimate company before you take any additional steps. 

  • Scammers might encourage you to cut off communications with your loan servicer. If someone urges you to make payments to their company instead of your servicer or to stop communicating with your servicer, do not give them any information and do not stop making payments to your servicer. 

  • If someone contacts you and claims to be partnered with your loan servicer or the Department of Education, hang up the phone and contact your loan servicer directly to confirm. Call the number provided on your billing statement or through your servicer’s web portal. Do not use contact information provided in an email or voicemail message. 

  • Scammers often ask for personal information such as your full Social Security number, bank account number, FSA ID, or studentaid.gov password. Do not give any personal information to an unverified company over the phone. Scammers can use this information to get into your account and steal your identity. 

For details, read Consumer Advisory: Don’t give money or information to scammers promising student loan forgiveness and Scammers Offering Student Loan (Un)Forgiveness. In addition to submitting complaints with the Consumer Financial Protection Bureau (DFPB) and the Federal Trade Commission (FTC), we encourage you to learn how to recognize these scams and how to report scammers to authorities. If you have questions about your student loans, you can also contact the DFPI at Ask.DFPI@dfpi.ca.gov or call us at (866) 275-2677.


Interest Rates Will Rise on New Federal Student Loans Starting July 1 

The cost of borrowing money from the federal government to pay for college is set to rise later this summer following the U.S. Treasury Department’s Sale of 10-year Notes on May 11, the government security to which the rates are tied. The new interest rates take effect on July 1 for the 2022-2023 school year and are fixed for the lifetime of the loan. The changes affect only new federal student loans, not existing loans. For new undergraduate student loans, the interest rate will increase to 4.99 percent, up from the current 3.73 percent. The rate on direct loans for graduate students will increase to 6.54 percent from this year’s 5.28 percent. And the interest rates on federal PLUS loans, both for graduate students and parents paying for their children’s education, will be 7.54 percent, up from the current 6.28 percent. For details, read Interest Rates on New Federal Student Loans Going Up for 2022-23


Education Department Cancels $5.8 Billion in Student Loans for Former Corinthian College Students 

The U.S. Department of Education announced on June 1 that it will cancel all outstanding loans held by students who attended any campus owned or operated by Corinthian Colleges Inc., which operated schools under the Heald, Everest, and Wyotech brand names. This will result in 560,000 borrowers receiving $5.8 billion in full loan discharges, including borrowers who have not yet applied for a Borrower Defense Loan Discharge. The California Attorney General’s Office led the charge against for-profit Corinthian Colleges and its subsidiaries, seeking to put an end to abusive practices that left students with a mountain of debt and often without the jobs Corinthian had falsely promised its degrees would provide. Corinthian specifically targeted low-income, vulnerable students through false advertisements that misrepresented job placement rates and the value of its educational programs. Corinthian illegally used the seals of the armed forces in its advertisements to recruit veterans. It also engaged in illegal debt collection practices. Affected students will receive notices automatically and do not need to take further action.


U.S. to Cancel $6 Billion in Student Loans for 200,000 Defrauded Borrowers 

The U.S. Government will cancel an estimated $6 billion in federal student loan debt for about 200,000 borrowers who have claimed they were defrauded by their college. Many of the borrowers affected by the new agreement have been waiting years for the Department of Education (the Department) to process their claims under the Borrower Defense Loan Discharge Program, which allows borrowers who believe they were misled by their college, often over inflated job placement rates or the ability to transfer credits, to request federal student loan relief. Under former Education Secretary Betsy DeVos, processing of the applications stalled. But the Biden administration has been chipping away at the backlog. Seven of those borrowers filed a class action lawsuit, Sweet v. Cardona, in 2019 over the Department's handling of the claims. About 200,000 borrowers will automatically get full debt relief. Those eligible borrowers went to one of dozens of schools that the Department has already determined engaged in misconduct that justifies debt relief. For more information, read Biden Administration Agrees to Cancel Another $6 Billion in Student Loan Debt for Defrauded Borrowers. 


July 30 is National Whistleblower Day 

On this day in 1778, the U.S. Continental Congress unanimously passed America’s first whistleblower law. Enacted during the height of the Revolution, it demonstrates that the Founding Fathers recognized the importance of whistleblowers and demanded that they be protected. To honor this history, the first Congressional celebration of National Whistleblower Day took place in the U.S. Senate on July 30th, 2015. National Whistleblower Day is now an annual celebration commemorating the contributions of whistleblowers around the world who have bravely stepped forward to expose waste, fraud, corruption, and abuse. 

California whistleblower protection laws prohibit employers from retaliating against workers who come forward to report suspected violations of laws, regulations, and public policy including:  

  • An employee who reports suspected criminal activity by an employer to a government or law enforcement agency. 

  • An employee who reports a suspected violation of a law or regulation to a supervisor or other person at the employer who has the authority to investigate the violation. 

  • An employee who reports California wage hour laws or other labor related complaints to the California Labor Commissioner. 

  • A public employee who reports economically wasteful, incompetent, or inefficient activity to the California State Auditor

Every California state agency is subject to the employee notice provisions of the California Whistleblower Protection Act. Under this Act, state employees can confidentially report improper governmental activities and are protected from retaliation for doing so. For more information or to file a complaint, visit the State Auditor’s Whistleblowers Resources Webpage

Nongovernmental violations can be filed on the California State Attorney General’s Website or by calling their Whistleblower Hotline at 1-800-952-5225. The Attorney General’s Office will refer your call to the appropriate government authority for review and possible investigation. 

Private industry complaints can also be filed on the California Department of Industrial Relations Website. Labor specific violations can be filed on their Workplace Safety Complaint Website or Retaliation/Discrimination Complaint Website.


Behind in Your Mortgage? Help Now Available for More Californians 

The state is now offering to cover more Californians’ mortgage debt. The California Mortgage Relief Program announced in June that it would extend help to two new groups of homeowners who are delinquent on their mortgages for pandemic-related reasons: 

  1. Households earning as much as 150% of their county’s median income, up from the original 100%.  

  1. Homeowners with qualifying incomes who started falling behind on their mortgages this year as well as those who missed only one mortgage payment in 2020 or 2021 but then missed at least one more in 2022. Previously, applicants had to have missed at least two mortgage payments before December 27, 2021, to obtain help.  

An estimate of 90,000 additional homeowners may be eligible for the program. The program will also pay a qualified homeowner’s mortgage debt in full, provided it was no more than $80,000 when they applied. Another new feature is that the program will cover up to $20,000 in delinquent property taxes for qualified applicants who pay their taxes directly to the county. Previously, the program covered delinquent taxes just for applicants who paid taxes through a lender’s escrow account. For more information on Who is Eligible and How to Apply, visit the California Mortgage Relief Program Website


Save Water, Save Money with Smart Irrigation 

For the past several years, California has faced severe drought due to climate change. Smart Irrigation Month is celebrated in July to promote efficient water use, saving money on utility bills, and protecting community water supplies. Water conservation is important to preserve our environment and minimize future water shortages and smart irrigation technologies, products, and services are effective ways to conserve water. 

Smart irrigation is essential because billions of gallons of water are used for landscape irrigation and over 50% of this water is wasted due to overwatering. The best way to celebrate Smart Irrigation Month is to get a smart irrigation system if you don’t already have one. Smart irrigation can not only reduce your water bills but also reduce water usage by 20 to 40%. Several California utilities, such as the East Bay Municipal Utility District (EBMUD) and Sacramento Municipal Utility District (SMUD), offer rebate programs to upgrade your irrigation systems to smart technology. Check with your utility company to find out if they offer rebates or incentive programs for water-saving equipment upgrades in your area. 

The California Water Service (Cal Water) offers lawn-to-garden and spray-to-drip rebates that provide incentives for their customers to make their landscaping and irrigation systems as efficient as possible. Both programs are available to single-family residential, multi-family residential, and commercial customers. For details, visit the Cal Water Conservation Website.  

California is in desperate need for its residents to convert their lawns to low-water plants and design. The SoCal Water$mart Program offers rebates for lawn replacements and other landscaping improvements. Based on the size of your yard and your landscaping plan, you could qualify for thousands of dollars of incentives from your local water district. To find out about similar water-saving programs across California, read How-to Get CASH Rebates for New Landscaping in California

Since water is a limited resource and it’s important to each of us every day, water conservation is essential. We must all make the commitment to work together to save water. For additional tips on How to Save Water around the Yard or throughout your home, visit the California Department of Water Resources Save Our Water Website.  


Get Help Paying for Internet with the Affordable Connectivity Program 

The Affordable Connectivity Program is a Federal Communications Commission (FCC) benefit program that helps ensure households can afford the Internet they need for work, school, healthcare, and more. This benefit provides a discount of up to $30 per month toward internet service for eligible households and up to $75 per month for households on qualifying Tribal lands. Eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from participating providers if they contribute more than $10 and less than $50 toward the purchase price. Learn more about eligibility and how to enroll by visiting the FCC Affordable Connectivity Program Webpage

DFPI News


 

DFPI’s Commercial Financing Disclosure Regulations Extended to Small Businesses 

The California Office of Administrative Law (OAL) approved on June 9 the DFPI’s proposed commercial financing disclosure regulations. The regulations extend disclosure protections to California small businesses when those businesses seek commercial financing. When the disclosures take effect on December 9 of this year, California small businesses will be better equipped to understand the costs and benefits of commercial financing offers and to compare different offers to find the best financing solution to meet their needs. The final regulations and Final Statement of Reasons are posted to the DFPI website.  

The regulations are the culmination of a multi-year process in which the DFPI solicited input from a diverse range of stakeholders and used that input to improve the DFPI’s draft regulations. On September 30, 2018, California enacted SB 1235 (Glazer), a bill requiring commercial financing providers to provide disclosures to small businesses. The bill required providers to disclose the total amount of funds provided, the total dollar cost of financing, the term or estimated term, the method, frequency, and amount of payments, a description of prepayment penalties, and (until January 1, 2024) the total cost of financing expressed as an annualized rate. The California Legislature tasked the DFPI with issuing regulations before the above-described requirements would take effect. 

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?

  • Scams are the number-one type of crime in the U.S. according to recently released Federal Trade Commission (FTC) data showing that consumers reported more than $5.8 billion to fraud in 2021, an increase of more than 70% over the previous year. The most reported category is imposter scams followed by online shopping scams. A full breakdown of reports received in 2021 is available on the FTC’s Explore Data Website

  • The slavery reparations movement recently released an historic report detailing California’s role in perpetuating discrimination against African Americans, a major step toward educating the public and setting the stage for an official government apology and case for financial restitution. Some of the task force proposals include funding for free tuition to California colleges and universities for African Americans and a state-subsidized mortgage system that guarantees low interest rates for qualified California Black mortgage applicants. For details, read the California Task Force to Study and Develop Reparation Proposals for African Americans Interim Report

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

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CLOTHILDE V. HEWLETT • Commissioner of Financial Protection and Innovation

The July 2022 Consumer Connection covers the month ending July, 2022.

The Consumer Connection is available at no charge via e-mail.

To subscribe, go to: www.dfpi.ca.gov/subscribe

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