Monthly Bulletin – April 2024

DFPI Launches 5th Round of CalMoneySmart Grants to Support Financial Empowerment

On April 9, the DFPI began accepting applications for CalMoneySmart grants to support financial education and empowerment programs for unbanked and underbanked consumers in the state of California. Beginning this round, applicants may apply for funding for two consecutive fiscal years.

This is the fifth cycle of grant funding. Last year, the program awarded nearly $2 million to 15 nonprofit organizations serving 28 counties across the state.

Some Escrow Reports Due Apr. 15

Escrow agents are required to submit to the Commissioner an annual report prepared by an independent certified public accountant or an independent public accountant (Financial Code section 17406) within 105 days after the close of the escrow agent’s fiscal year. The annual report includes audited financial statements and required supplemental information.

If your fiscal year ended on December 31, 2023, your annual report is due April 15, 2024. Please have your CPA email your report to [email protected] by the deadline using a secured, encrypted delivery system. The use of a secured dropbox is also acceptable. If your CPA is unable to submit the annual report electronically, it can be mailed to Queen Padilla, Senior Financial Institutions Examiner, Escrow Law, Department of Financial Protection and Innovation, 320 West Fourth Street, Suite 750, Los Angeles, CA 90013.

Penalties for failure to file the annual report by the due date or to include required information are $100 per day for the first five days a report is late and $500 per day thereafter (Financial Code section 17408). Failure to file a report or to include any required information may also result in the suspension or revocation of an escrow agent’s license or prompt an immediate examination (Financial Code section 17602.5).

For questions about the annual reports, email [email protected].

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One-time Adjustment Request for Privately Held Student Loans Due April 30

DFPI encourages borrowers who have commercially managed Perkins, FFEL, or HEAL Program loans to apply for loan consolidation by the April 30, 2024 deadline, to obtain the full benefits of the IDR payment count adjustment.

Under the Income-Driven Repayment (IDR) One Time Adjustment, the U.S. Department of Education (ED) will review borrowers’ accounts and give them credit for certain months of repayment, forbearance, and deferment, that didn’t previously qualify for IDR forgiveness. ED has approved almost $44 billion in debt relief for more than 900,000 borrowers as part of the payment count adjustment.

The adjustment is automatic for borrowers with Direct or federally managed Federal Family Education Loan (FFEL) Loans. However, borrowers with commercially (private) held “Perkins” Loans, commercially-managed FFEL Loans, or Health Education Assistance Loans (HEAL) do not automatically qualify. Applying is especially critical for borrowers who have been in repayment for at least 20 years, as they may already be eligible for loan forgiveness.

In addition to the benefits of the IDR Adjustment, borrowers who consolidate into a Direct Consolidation Loan are also able to take advantage of affordable repayment plans, such as the new Saving on a Valuable Education (SAVE) Plan.

To confirm loan types, borrowers may log on to StudentAid.gov. For questions about loans or consolidation, please contact the DFPI Student Loan Ombudsperson at [email protected].

BDIA Online Examination due May 17

The Broker-Dealer / Investment Adviser (BDIA) Division is continuing an annual online examination for certain registered Investment Advisers, in accordance with DFPI’s authority under California Corporations Code section 25241, subdivision (c). This mandatory examination consists of an online examination for Investment Advisers registered with the DFPI that have their principal place of business in another state.

The annual online examination commenced on April 2, 2024. If selected, the advisory firm was notified on April 2, and required to complete and submit the online examination by May 17, 2024. The Division will conduct the exam on a four-year cycle for these licensees. However, an Investment Adviser may be selected for a future examination sooner or later than the estimated four-year cycle.

If you have any questions or inquiries, please contact the Division at [email protected].

Money Transmitter Sigue Ordered to Cease Operations

On March 22, the DFPI announced a consent order with Sigue Corporation (Sigue), a licensed money transmitter operating in the state with its headquarters in Sylmar, Calif. The order requires Sigue to cease all money transmission activity in California. DFPI issued the order due to Sigue’s deteriorating financial condition, which caused the company to be unable to meet its financial obligations. The order required Sigue to immediately cease money transmission and cooperate with consumers seeking refunds from Sigue. As of March 13, 2024, the company reported 8,232 unpaid money transmission transactions in California, totaling more than $1.7 million. California law (Financial Code section 2037) requires all licensed money transmitters to maintain surety bonds, or other cash and/or securities, to cover potential claims against the licensee by California consumers who have transactions that are unfulfilled by the licensee. This allows the public to receive a refund for any unpaid transactions should the money transmitter fail to comply with the law. Consumers with receipts for unpaid transactions may be eligible to recover their funds. Learn more and submit a complaint (English & Spanish). Consumers are encouraged to submit a complaint to the DFPI to assist in tracking unpaid transactions. A consumer is not required to submit a complaint to the DFPI to receive a refund; however, it may help facilitate the refund process.

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​Recent DFPI Consumer Alerts

The DFPI has issued Consumer Alerts warning of various fraudulent schemes and scams:

• Consumer Alert: Fraudulent Bank Website Scam – Beach Cities Commercial Bank (BCCB) has advised the DFPI that they recently received an inquiry regarding a website associated with the domain beachcitiescommercialbank.com representing themselves as an e-bank. BCCB’s legitimate domain is beachcitiescb.com.
• Consumer Alert: Imposter Website carolpasollewis.com – DFPI has received information that the website carolpasolewis.com is fraudulently marketing as a licensed financial adviser. The imposter’s website is not associated with a California-licensed investment adviser or broker-dealer.
• Consumer Alert: Global Lending CA Posing as Legitimate Lender – DFPI has received information about an advance fee scam involving consumer loans. The imposter represents itself to the public as Global Lending CA and may be offering consumer loans or revolving lines of credit to the public. The imposter’s website glgiwholsale.com is not associated with any California-licensed mortgage broker.
• Consumer Alert: Imposter Website jenniferlilibethtibbs.com – DFPI has received information that the website jenniferlilibethtibbs.com and email address [email protected] are fraudulently marketing as a licensed financial adviser. The imposter’s website and email address are not associated with a California-licensed Investment Adviser or Broker-dealer.

​Financial Literacy Month Event

In honor of National Financial Literacy Month (also known as Financial Capability Month) the DFPI is hosting a free webinar on April 24. This popular annual event highlights resources for Californians for affordable financial services, homeownership, smart money management, and more.

This year’s event will include remarks from DFPI Commissioner Clothilde Hewlett and feature a panel of experts discussing the theme of “Protecting Yourself from Scams and Frauds,” moderated by DFPI Deputy Commissioner for Enforcement Mary Ann Smith.

Topics include important updates from community partners and a panel discussion on the growing use of technology to target consumers, and what to do to outsmart them. Register online.

Contact Katie Carruesco, Targeted Outreach Specialist, at [email protected] for questions, to be an exhibitor, or to update your previous exhibitor information.

Consumer Webinar May 8

The DFPI hosts a monthly consumer financial education webinar exploring a new topic every month. Each webinar includes guest speakers and a Q&A session. Everyone who registers for these webinars will be emailed a link to the recording and a copy of the slides. Past presentations in the series may be viewed on the .

The next webinar, “Starting Your Own Business,” is scheduled for May 8 at 12 p.m., PST (Registration].

This webinar, in partnership with the U.S. Small Business Administration (SBA), will include topics such as market research, business plans, regulations and licensing, and funding. Discussion will include how starting, owning, and operating a business can be a pathway to building generational wealth.

​LICENSEE ACTIVITY

Commercial Bank Activity

New Bank

QIB Bank
Proposed location: Street address to be determined in Downtown Los Angeles, Los Angeles
Correspondent: James B. Jones
Carpenter & Company, 23 Corporate Plaza Drive, Suite 150, #D-11, Newport Beach, CA 92660
Phone: 949-261-8888
Filed: 3/11/24

Merger

Luther Burbank Savings, Santa Rosa, California, to merge with and into Washington Federal Bank, Seattle, Washington
Effected: 3/01/24

Credit Union Activity

Merger

Bourns Employees Federal Credit Union, Riverside, to merge with and into Arrowhead Central Credit Union, Rancho Cucamonga
Filed: 3/13/2024

Conversion to state charter

SESLOC Federal Credit Union, to convert to state charter under the name SESLOC Credit Union
Effected: 3/29/24

Premium Finance Company Activity

New Premium Finance Company

PacFi Inc
3100 W Burbank Boulevard, Burbank
Withdrawn: 3/08/24

Acquisition of Control

Rajni Kapur, Harish Kapur, and the Timothy S. Kane Living Trust with Timothy S. Kane as sole Trustee, to acquire control of Principal Premium Financing, Inc.
Filed: 1/11/24
Approved: 3/21/24

Foreign (Other Nation) Bank Activity

Voluntary Surrender

Credit Suisse AG

• 650 California Street, San Francisco (Representative Office)
• 1999 Avenue of the Stars, Los Angeles (Representative Office)

Filed: 3/01/24

Foreign (Other State) Bank Activity

New Branch

Esquire Bank, National Association
1925 Century Park East, Los Angeles
Filed: 3/11/24

New Facility

Ally Bank
535 Anton Boulevard, Costa Mesa
Opened: 8/01/19

Money Transmitter Activity

Voluntary Surrender

Chime Inc.
Effected: 3/11/24