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For the full version of this newsletter, visit our website.
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. |
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More Relief for LA Fire Victims
Almost exactly a year ago, wildfires ravaged Los Angeles. This month, the Governor announced additional commitments from major national lenders to offer additional forbearance of up to 90 days to impacted LA wildfires victims. Read more.
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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.
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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.
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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.
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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.
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New Consumer Alerts
We recently issued 2 warnings
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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.
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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.
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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.
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Reminder: 2025 CCFPL Commercial Financing Annual Report Due March 15, 2026
According to regulations effective October 1, 2023, 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, you are required to file an annual report with the Commissioner of the DFPI by March 15, 2026. See more details here in last month’s issue.
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Reminder: CCFPL 2025 Annual Reports Due March 15, 2026
Debt Collection Licensing Act (DCLA) Annual Report Due March 16, 2026
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 website. The deadline to submit the report electronically is Feb. 15, 2026. Read more.
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Final Invoice for 2025-26 Escrow Assessment Fee Due Soon
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 assessment license fee of $3,800. Please note a new assessment fee will start on 2026-27 fiscal year. Read more.
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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.
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In December, several financial institutions underwent regulatory activity in California. See the links below for more information.
Bank Activity
Credit Union Activity
Foreign (Other Nation) Bank Activity
Money Transmitter Activity
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