Monthly Bulletin January 2026

DFPI News

The DFPI Difference: Consumer Success Stories

When Californians face financial challenges from scams, fraud, or disaster, they deserve a place to turn. We do not provide legal advice or guarantee consumers a resolution. We work with mortgage lenders and servicers to ensure borrowers are not misled or subjected to unlawful, unfair, deceptive, or abusive practices. By doing so, the DFPI Consumer Services Office has helped thousands of Californians navigate difficult situations and secure fair resolutions. Here are some of their stories.

More Relief for LA Fire Victims

Almost exactly a year ago, as wildfires ravaged Los Angeles, Governor Newsom announced that the state had worked with major national lenders to offer mortgage relief to LA victims. Within one month, the Department of Financial Protection and Innovation (DFPI) confirmed additional commitments from more than 420 financial institutions. The state appreciates this commitment.

In September, the Governor signed into law AB 238, which extends mortgage forbearance up to 12 months and deepens homeowner protections by expanding relief and creating enforceable legal requirements.

This month, the Governor announced additional commitments from major national lenders to offer additional forbearance of up to 90 days to impacted customers, subject to investor approval and consistent with the terms of the Governor’s January 2025 agreement. DFPI has reached out to the financial institutions to request that they join in this commitment to support those still suffering hardship and recovering from the devastating fires.

California Homeowner Bill of Rights (HBOR) Provides Protections to Homeowners Facing Foreclosure

If you are a mortgage servicer, remember you must try to contact borrowers at least 30 days before starting the foreclosure process to discuss their financial situation and explore options to avoid foreclosure. Read the full details.

Enhanced Consumer Protection

On January 1, 2026, a new law, SB 825 went into effect to strengthen protections for California consumers. This law clarifies that providers of consumer financial products and services, regardless of their licensing status, are subject to the DFPI’s authority to stop unlawful, unfair, deceptive, or abusive acts or practices. See more details in last month’s issue.

Help for Small Businesses – Transparency in Lending

Another new law went into effect on January 1, 2026. SB 362 improves small business lending transparency by requiring financial providers to use the term “annual percentage rate” or the acronym “APR” in specified circumstances. See more details here.

DFPI Fines Nexo Capital Inc. $500,000 in Penalties

We ordered Nexo Capital Inc. (Nexo) to pay $500,000 for breaking California financial laws, including offering crypto-backed loans and services without a valid license. In addition, Nexo must, within 150 days, transfer all funds belonging to California residents to Nexo Financial LLC, a US-based affiliate that holds a CFL license with the DFPI.

New Consumer Alerts

We recently issued 2 warnings

• CCG & Associates and EZ Loan are fake companies posing as debt collectors. These entities are not licensed by the DFPI and are not affiliated with CCG Continental Commercial Group, a licensed debt collector.
• Be aware of a scam involving sham letters and emails impersonating the DFPI. The letters request a “security deposit” for activities related to cryptocurrency asset mining. This letter did not originate from the DFPI and appears to be part of a phishing scam.

DFPI CalMoneySmart Annual Report

The DFPI published the CalMoneySmart 2023-24 Annual Report, celebrating its fourth year of impact and innovation in advancing financial empowerment across California. The CalMoneySmart grant program was initially authorized in 2019 under Senate Bill 455 and later expanded under the 2021-22 State budget (Assembly Bill 137) for community-based programs that empower unbanked and underbanked Californians. More than 11,000 individuals in 35 counties received assistance from one of 15 nonprofit organizations this year. View report.

Banks and Credit Unions News

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

Financial Code section 521 requires state-chartered banks and credit unions to report annually to the Department of Financial Protection and Innovation (DFPI) the revenue they received from fees on nonsufficient funds 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. See more details in our December issue.

California Consumer Financial Protection Law (CCFPL) News

Reminder: 2025 CCFPL Commercial Financing Annual Report Due March 15, 2026

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), you are required to file a Commercial Financing Annual Report with the Commissioner of the Department of Financial Protection and Innovation (DFPI) by March 15, 2026. See more details here in last month’s issue.

Reminder: CCFPL 2025 Annual Reports Due 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 Department of Financial Protection and Innovation (DFPI) by March 15, 2026. See more details in last month’s issue.

Debt Collection News

Debt Collection Licensing Act (DCLA) Annual Report Due March 16, 2026

All licensees under the Debt Collection Licensing Act (DCLA) must submit an Annual Report to the DFPI by March 16, 2026, per Financial Code section 100021(a). For questions about the Report or clarification on the instructions, please email [email protected].

Escrow News

Escrow Annual Liability Report Due Next Month

A reminder that all escrow agents licensed before Jan. 1, 2026, must submit an Annual Liability Report to the DFPI. The form is now available on our

A DFPI portal account is required to submit the Annual Liability Report. Register here. Licensees are strongly encouraged to begin gathering the data to ensure they can file a timely report. Failure to submit the report by the deadline may result in monetary penalties pursuant to Financial Code section 17408. For questions, please email [email protected].

Final Invoice for 2025-26 Escrow Assessment Fee Due Soon

After a comprehensive Fee Study evaluation in April 2024, the Department of Financial Protection and Innovation (DFPI) will increase the Escrow assessment license fee from $2,800 to $7,215, starting 2026-27 fiscal year.

For the 2025-26 fiscal year, the DFPI will continue to assess the existing annual license fee of $2,800 per location, plus a one-time special assessment of $1,000 per location. A total Escrow assessment license fee of $3,800.

The invoicing for the 2025-26 Escrow assessment occurs in two phases:

• Initial assessment: $2,800, issued and mailed to licensees in May 2025
• Special assessment: $1,000, to be issued and mailed in mid-February 2026

The special assessment is due within 60 days of receipt of the invoice. Failure to pay by the due date may result in a penalty of 10 percent of the special assessment for each month, or partial month, the payment is delinquent. In addition, the Commissioner may summarily suspend or revoke an escrow agent’s license.

For questions regarding the special assessment, please contact [email protected].

Important note: Starting May 2026 (2026-27 fiscal year), the new annual Escrow assessment license fee of $7,215 will go into effect, as authorized through trailer bill language (AB 137).

Upcoming Consumer Education Event

Every month, we educate consumers through community events and a monthly webinar.

Protect Yourself from Romance Scams Webinar

Feb. 4, 1 – 2 p.m.

Don’t let a plea for love turn into a financial nightmare. Romance scams can result in devastating financial and emotional losses every year, often leaving victims feeling isolated and ashamed. Join this webinar to learn how to identify, avoid, and report these schemes, including the scammer’s tactics and the red flags to watch out for. Everyone who registers for this webinar will receive a link to the recording as well as a copy of the slides.

Register here.