Californians with Student Loans Updates
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Student Loan Repayments Pause Extended – The U.S. Department of Education announced on Nov. 22 an extension of the pause on student loan repayment, interest, and collections to allow legal challenges to be heard by the Supreme Court. Student loan payments will resume 60 days after the Department is permitted to implement debt relief or the litigation is resolved. If litigation has not been resolved by June 30, 2023, student loan payments will resume in September 2023. Borrowers are encouraged to use the additional time to ensure their contact information is up to date with their loan servicers and consider enrolling in electronic debit and income-driven repayment plans to support a smooth transition to repayment. For more information, visit StudentAid.gov.
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Student Loan Updates Webinar – Join the DFPI’s Student Loan Services Ombudsperson, Celina Damian, to learn about recently announced student loan updates including the student loan repayment pause extension, Federal Student Debt Relief, Public Service Loan Forgiveness, the Fresh Start program, and more. Dec. 21, 12 – 1 p.m. Register online. Past webinars can be viewed on our YouTube Channel.
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Student Loan FAQ Updated – The DFPI recently updated its student loan FAQ page on its Back on Track website. Check out the site for the most up to date student loan information and educational resources.
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Upcoming Events
For more information about DFPI’s Education & Outreach programs, events calendar, and other consumer protection resources, visit DFPI Education & Outreach. Recordings of select events can also be viewed on the DFPI YouTube Channel.
Money Matters: Financial Literacy Program Series – Pay off Your Debt – Santa Ana
Dec 14, 6 – 7 p.m. | Santa Ana Library, Newhope Branch
In-person seminar with DFPI to take a step closer to a debt-free life by learning the ins and outs of what debt is and the options that exist for paying off debt. More information: (714) 647-6992.
SPA 8 Health Neighborhood Winter Networking Event – Inglewood
Dec 15, 2:30pm – 4 p.m. | Curtis R. Tucker Health Center
Learn about the Service Area 8 Health Neighborhood. The DFPI and other community stakeholders will distribute educational resources. More information: Kim Phan, kphan@dmh.lacounty.gov. RSVP online.
Fraud Watch Network Tele-Town Hall on Emerging Scams
Dec. 16, 11 a.m. – 12 p.m. | Virtual Event
Hosted by AARP with guest Sally Westlake, Outreach Specialist from DFPI. Learn about the latest emerging scams and ask your questions. Register online.
Student Loan Updates Webinar
Dec 21, 12 – 1 p.m. | Virtual Event
Join the DFPI’s Student Loan Services Ombudsperson, Celina Damian, to learn about recently announced student loan updates including the student loan repayment pause extension, Federal Student Debt Relief, Public Service Loan Forgiveness, the Fresh Start program, and more. Register online.
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Beware of Crypto Recovery Scams
The recent failures with major cryptocurrency companies have wiped out many crypto investors. Scammers are opportunists, which means they may try to use the crisis to cash in. Scammers might try to convince you that they can get your money back (Spoiler alert: they can’t.) They’ll impersonate the government, a company, or another organization saying that they can help you recover all your money, for a fee or if you give them your financial information so they can put the lost funds back into your account. If you do either of these, your money will be gone. To spot and avoid recovery scams, remember:
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Never pay anyone who contacts you offering to recover money you lost to a scam. No legitimate organization will call, email, send a letter, or contact you on social media with this kind of offer.
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Do your research. You can check out any offers by searching for the company’s name online with the words “complaint,” “scam,” or “review.” See what people have posted.
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Check out the DFPI’s Consumer Alerts.
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Only scammers will tell you to pay by gift card, cryptocurrency, or wire transfer. This is a sure sign of a scam.
For more information, read the Federal Trade Commission’s Worried about crypto exchange losses? Don’t pay money for “help” recovering money.
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Tis the Season – Holiday Shopping Tips
Holiday shopping is in full swing! As we search for the best deals from store to store or online, scammers are shopping for victims and ways to obtain access to our wallets. Making smart decisions about using credit, debit, or retail store cards, money transfers, and cash for your purchases can make or break whether your holidays stay merry or not. For tips on how to keep your money safe while holiday shopping, read Tis the Season – Holiday Shopping Tips.
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Meet Our Targeted Outreach Team
 My name is Antonia Villaseñor, and I am part the DFPI’s Targeted Outreach Team. I am a lifelong Angelino and a graduate from Occidental College. For most of my career, I have worked for community nonprofits ranging from community health to economic development in underserved communities. I joined the State workforce in 2008 and have been working for the DFPI for over 10 years. I give presentations in English and Spanish to groups across Southern California about financial skills, the DFPI’s work, and financial fraud prevention. This fall I am enjoying talking to consumers about preventing fraud during the holiday season. When I am not at work, I enjoy music (all kinds), gardening, reading (especially science fiction), and spending time with friends and family. If you would like to schedule a presentation about financial education or avoiding frauds and scams, contact me at Antonia.Villasenor@dfpi.ca.gov.
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Buy Now, Pay Later: Protect Yourself Before You Check Out
Buy Now, Pay Later (BNPL) plans are a popular way to make purchases online that allow customers to fully purchase products and spread payment over installments. BNPL services can be useful, but like all forms of credit they should be used carefully. Low initial payments, no credit checks, and approval at the click of a button are a powerful combination that can lead consumers to buy too much, too quickly, and on too many different payment plans at once. Before your next big purchase, make sure you are adequately informed about BNPL, so you don’t end up owing more than you bargained for. For more information about BNPL plans, their potential risks, and how to protect yourself, read Buy Now, Pay Later: Protect Yourself Before You Check Out.
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Checking Your Credit – What You Need to Know
Your credit report is an important part of your financial life that determines whether you can get credit and how much it costs you to borrow. Whether you have “good” or “bad” credit is based on your credit history. Reviewing your credit report can help protect your credit history from mistakes, errors, and identity theft. The DFPI strongly encourages you to pull your credit report annually, so there are no surprises when you need to open a new account or use your credit for an important purchase, such as a car or home. For more information about credit reports, how to protect yourself from identity theft, or how to fix errors in your credit history, read Checking Your Credit – What You Need to Know.
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Video Series: Monitor and Improve Your Credit Reports and Scores
The Consumer Financial Protection Bureau (CFPB) offers free pre-recorded financial education webinar modules through its Financial Education Exchange. CFPB FinEx is a place where financial educators, practitioners, counselors, researchers, and others share information and best practices. Their Helping Clients Monitor and Improve Their Credit Reports and Scores series includes four short video modules to help you effectively monitor, manage, and improve your credit reports and scores. Each module covers certain credit reporting topics, such as how to get and review credit scores and reports, address common issues, and referral resources for more complex credit goals and challenges.
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How to Avoid Donating to Fake Causes and Charities
December is also known as the Month of Giving. In addition to holiday gift purchases for friends and family, you might also be planning your year-end gift giving to your favorite nonprofits and charities. Unfortunately, scammers also know this and are ready to prey on your charity and collect cash for themselves.
These scams can look, sound, and feel very realistic. Scammers may contact you via telephone, email, text message, social media, or even through door-to-door solicitation. Some are even registered nonprofits but donate only a tiny portion of their earnings to the causes they promote. Others steal true stories and photos from legitimate crowdfunding causes to create fake GoFundMe pages. Whatever the approach, the goal is the same — getting you to “donate” to the scammer.
If you have doubts about a charity or cause, you can research them on watchdog sites like CharityWatch or the Better Business Bureau. Use the IRS’s online database to see if the organization is a registered charity. For more guidelines on how to avoid donating to fake causes, read the Federal Trade Commission’s Donating Through Crowdfunding, Social Media, and Fundraising Platforms.
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Commercial Financing Disclosure Regulations for Small Businesses Begin Dec. 9
The DFPI’s commercial financing disclosure regulations (approved by the California Office of Administrative Law on June 9) took effect Dec. 9. These regulations extend consumer-style disclosure protections to California small businesses seeking commercial financing and govern, among others, providers of traditional installment loans and open-end credit, commercial factoring, and merchant cash advances. Providers now will be required to disclose metrics such as the amount of funding the small business will receive, the Annual Percentage Rate (APR), payment amount, and details related to prepayment policies. The regulations will assist small businesses in making more informed decisions about the potential costs and benefits of commercial financing offers and choosing the best financing solutions to meet their needs. Since June, several states have followed California in enacting similar requirements. For more information read the DFPI Press Release.
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Governor’s Report on Blockchain and Web3 Technologies
On Dec. 2, the DFPI released, in partnership with the Governor’s Office of Business and Economic Development (GO-Biz) and the Government Operations Agency (GovOps), a report on the implementation of Governor Newsom’s Blockchain and Web3 Technologies Executive Order N-9-22 (EO) This interagency progress report reflects the state’s work to implement the EO over the past seven months, beginning with stakeholder meetings that took place over the summer. Read the full report, Towards Responsible Innovation: An Interagency Web3, Crypto Asset, and Blockchain Progress Report to the Governor of California, on the DFPI website.
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DFPI Enforcement Actions and Alerts
Crypto Asset Platforms:
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BlockFi: The DFPI announced on Nov. 18 that it issued an Order to Suspend BlockFi’s California Financing Law (CFL) license for 30 days pending the DFPI’s investigation. The suspension follows the DFPI’s Notice of Intent to Suspend issued on Nov. 11, 2022, which was prompted by BlockFi’s Nov. 10 announcement that it would limit platform activity, including pausing client withdrawals. BlockFi’s announcement to suspend withdrawals came days after crypto asset platform FTX and its affiliated entities filed for bankruptcy.
Crypto Lending Companies:
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MyConstant: The DFPI announced on Dec. 5 an investigation of crypto-related lending company CONST LLC (doing business as “MyConstant”), which is not licensed to operate in California by the DFPI. On Nov. 17, MyConstant posted messages on its website that it had paused consumer deposits and withdrawals days after crypto asset platform FTX and its affiliated entities filed for bankruptcy. On Nov. 25, MyConstant informed customers that it intends to “implement an orderly liquidation to maximize and expedite customer recoveries.”
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SALT Lending LLC: The DFPI announced on Nov. 23 that it issued an Order to Suspend SALT Lending LLC’s California Financing Law (CFL) license for 30 days pending the DFPI’s investigation. The suspension follows SALT Lending LLC’s Nov. 15 announcement that it would limit platform activity, including pausing client withdrawals days after crypto asset platform FTX and its affiliated entities filed for bankruptcy. SALT Lending LLC reports to the DFPI that it has ceased offering loans in California.
High Yield Investment Programs (HYIPs):
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NovaTech: The DFPI issued a Desist and Refrain Order on Nov. 22 under allegations that NovaTech sold unqualified securities and misrepresented itself as a registered hedge fund, a registered investment adviser, and a registered broker to convince investors that it was a legitimate, lucrative investment opportunity.
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Fundsz: The DFPI issued a Desist and Refrain Order on Nov. 22 under allegations that Fundsz sold unqualified securities while assuring investors that its proprietary algorithm would trade crypto assets and generate steady returns for investors averaging about 3% per week.
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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 Careers Webpage.
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Contact Us
Do you have any questions or comments about the Consumer Connection 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 events and consumer resources, visit DFPI Education & Outreach.
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