Monthly Bulletin February 2026

DFPI News

Two New Consumer Alerts

RockItCoin Crypto Kiosk Violation – We ordered crypto kiosk operator RockItCoin to return $202,000 to California customers who were overcharged and to pay a $75,000 penalty.

Nexo Capital Inc. Settlement – We announced a settlement with Nexo Capital Inc. (Nexo), a company offering crypto-backed loans and services. The company will pay $500,000 in penalties for making loans to California residents without a valid license. A DFPI investigation discovered that Nexo offered consumer and commercial loans to at least 5,456 Californians without first considering their ability to make repayments.

Mortgage News

Holden Act Reports Due Next Month

Mortgage lending licensees must file their Residential Mortgage Loan Report (Holden Act Report) for calendar year 2025 no later than March 31, 2026.

The report must be filed by all state-licensed residential mortgage lenders that do not report the data to a federal or state regulatory agency, as provided by the Home Mortgage Disclosure Act of 1975.

Licensees should consult their internal compliance officers to determine whether they are required to file the report. Instructions and reporting forms are available on the DFPI website here.

Completed reports may be scanned and emailed to [email protected] on or before March 31.

Banks and Credit Unions News

Deadline Reminder: Banks and Credit Unions to Report Fee Income from NSF and Overdraft Charges by March 2, 2026

Financial Code section 521 requires state-chartered banks and credit unions to report annually to the DFPI the revenue they received from fees on nonsufficient funds (NSF) and overdraft charges during the calendar year. These reports are due by Monday, March 2, 2026, and will be published on our website by March 31.

Please refer to the FAQs or contact Marilyn Davis at [email protected] (banks) or Kim-Phuong Hoang at [email protected] (credit unions) for more information.

Consumer Financial Protection News

Invitation for Comments on Proposed Registration Rules for Consumer Reporting Providers

The DFPI has issued a second invitation for comments on proposed rulemaking under potential regulations under the California Consumer Financial Protection Law (CCFPL). Comments are due by February 26, 2026.

On October 28, 2024, the DFPI issued an invitation for comments on requiring registration and reporting from additional categories of covered persons under the CCFPL.

The Commissioner is now considering issuing new registration and reporting rules applicable to consumer-reporting providers. The Invitation for Comments linked below contains questions that interested parties should consider when submitting feedback on this proposed rulemaking.

Invitation

• PRO 07-24 Second Invitation for Comments

Submit Comments

The Commissioner invites interested parties to submit comments:

• By email: [email protected] (Include “PRO 07-24” in the subject line; comments submitted as attachments in Microsoft Word format (.docx) are preferred.)
• By postal mail:
  Department of Financial Protection and Innovation
  Attn: Diana Pha, Regulations Coordinator
  651 Bannon Street, Suite 300
  Sacramento, CA 95811

The California Consumer Financial Protection Law (CCFPL) (Fin. Code, § 90000 et seq.) protects consumers from unfair, deceptive, or abusive practices in the provision of financial services or products. In 2024, the DFPI finalized its inaugural registration and reporting regulations under the CCFPL. These regulations, which became effective on February 15, 2025, created registration and reporting requirements for providers of four previously unregistered financial products and services in California:

1. Income-based advances
2. Private postsecondary education financing
3. Debt settlement services
4. Student debt relief services

Reminder to Submit CCFPL Annual Reports by March 15, 2026

According to California Code of Regulations, title 10, section 1041(a), every registrant under the California Consumer Financial Protection Law (CCFPL) is required to submit an Annual Report to the Commissioner of the DFPI by March 15, 2026. This is the same deadline as submitting a Commercial Financing Annual Report. The latter is needed if you are engaged in the business of offering or providing commercial financing or another financial product or service to a small business, nonprofit, or family farm, as defined by California Code of Regulations, title 10, sections 1060(f), (h), and (i).

Read more in the December issue.

Debt Collection News

Action Required: Submit Debt Collection Licensing Act (DCLA) Annual Report by March 16, 2026

All licensees under the Debt Collection Licensing Act (DCLA) that were licensed before January 1, 2026, must submit an annual report by March 16, 2026, per Financial Code section 100021(a). For questions about the content of the Report or clarification on the instructions, please email [email protected] .

Debt Collector Unlawful Activity Alert

The DFPI is reminding debt collectors that serving a summons electronically is not allowed in California. The Code of Civil Procedure only permits four specific, in-person methods of service (See Code Civ. Proc., § 415.10 et seq.), and getting a consumer to “consent” to email service does not meet a licensee’s service of summons obligation.

Licensees found to be engaged in, or hired others, to engage in the unlawful service of process will be held accountable. Read the full details on our Debt Collectors page.

Escrow News

Escrow Assessment Clarification for Licensees

To ensure clarity for all escrow licensees, the DFPI is providing additional explanation regarding the timing of the new annual Escrow assessment rate. The DFPI’s fiscal year runs from July 1 through June 30.

Each May, the DFPI issues annual assessment invoices for the upcoming fiscal year that begins on July 1. Given this, the invoices that licensees will receive in May 2026 are for the 2026–27 fiscal year. As noted in the January Monthly Bulletin, the new annual Escrow assessment rate of $7,215 take effect beginning with the May 2026 billing cycle, as authorized by AB 137.

This means:

• The May 2026 invoice will reflect the new $7,215 annual assessment for each licensed location (main and branch).
• The new $7,215 rate does not begin in 2027. It applies to the 2026–27 fiscal year and therefore appears on the May 2026 invoice.

The DFPI is issuing this clarification in response to reports of misinformation circulating within the industry. We appreciate the efforts of licensees and industry members who have reached out to confirm the correct effective date. Licensees with questions may contact Escrow Licensing at [email protected].

Some Escrow Annual Reports Due February 13, 2026

Escrow agents are required to submit to the Commissioner of the DFPI an annual report prepared by an independent certified 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 October 31, 2025, your annual report is due February 13, 2026. Please have your CPA email your report to [email protected] by the deadline using a secure, encrypted delivery system. The use of a secure Dropbox is also acceptable. If your CPA is unable to submit the annual report electronically, it can be mailed to Stephanie Yoro, Office Technician, Escrow Law, Department of Financial Protection and Innovation, 320 West Fourth Street, Suite 750, Los Angeles, CA 90013.

Failure to file the annual report by the due date or to include required information, may result in a $100 fine 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].

2025 Escrow Annual Liability Report Due Feb. 15, 2026

A reminder that all escrow agents licensed before Jan. 1, 2026, must submit an Annual Liability Report to the DFPI. The form to submit this report is available on the DFPI’s website.

A DFPI portal account is required to submit the report. To register for a portal account, go to the DFPI’s website. Licensees are strongly encouraged to begin gathering the data to ensure they can timely file the Annual Liability Report. Missing the deadline may result in monetary penalties according to Financial Code section 17408. For questions, please email [email protected].

Broker-Dealers & Investment Advisers News

Investment Adviser Filing Deadlines

• Each year an investment adviser (IA) must file an annual updating amendment to Form ADV [Section 260.241.4]. This amendment should be filed with IARD within 90 days of the firm’s fiscal year end. Firms must also amend Form ADV (Parts 1 and 2) whenever the information in Form ADV becomes inaccurate. Please refer to Form ADV General Instructions, Item 4 for further clarification.

  It is important that Form ADV contains current and accurate information including a current e-mail address. The DFPI uses this e-mail address to keep you informed of current issues and developments.

• If an investment adviser (IA) is subject to the minimum financial requirements (Section 260.237.2), the firm must file with the DFPI Commissioner, not more than 90 days after the firm’s year-end, an annual financial report that reflects the firm’s financial condition.

  The annual financial report is to contain a Statement of Financial Condition prepared in accordance with generally accepted accounting principles (GAAP) and computations of the minimum financial requirements required under Section 260.237.2. Firms may use the Minimum Financial Requirements Worksheet for the computations of the minimum financial requirements.

  If an IA held or accepted custody of funds and/or securities for, or owed money or securities to customers or clients during the period covered, the firm must file audited financial statements prepared by an independent certified public accountant. If your firm has discretionary authority over client funds or securities, the financial report need not be audited.

  A verification form must accompany the financial report. The verification form must affirmatively state, to the best knowledge and belief of the person making the verification that the financial statements and supporting schedules are true and correct and must be signed that the information provided is accurate. Please use the Verification Form Pursuant to Section 260.241.2(b) for this purpose.

  Financial reports should be emailed to [email protected].

Upcoming Consumer Education Event

Every month, we educate consumers through community events and a monthly webinar. This March, our webinar coincides with National Consumer Protection Week.

Protect Yourself from Data Brokers and Data Breaches Webinar

March 4, 1 – 2 p.m.

From “invisible” data brokers to the constant threat of data breaches, your personal information is at risk of being collected and used in potentially harmful ways. Join this webinar to learn about the California Privacy Protection Agency’s (CPPA), new Delete Request and Opt-out Platform (DROP), which gives you more control over your data. Learn how DROP works and how it can help protect you from risks posed by data brokers.

Register here.