A New Rule Will Protect Student Borrowers

Posted by Jan McDonald October 24, 2024

Starting in February 2025, California consumers will have extra rights when dealing with student loan and debt settlement organizations.

The California Department of Financial Protection and Innovation (DFPI) has recently introduced a new rule, which mandates specific businesses to register if they wish to operate within the state.

Four types of businesses will need to register with DFPI, which will result in them being subjected to departmental supervision and oversight. These businesses include:

    • Debt Settlement Services
    • Student Debt Relief Services
    • Private Postsecondary Education Financing
    • Income-Based Advances (also known as “earned wage access”)

“These regulations take an innovative approach to overseeing emerging financial service providers and will help the DFPI protect consumers across a range of products and services in need of formal oversight here in California,” said DFPI Commissioner Clothilde V. Hewlett.

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Jan McDonald
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Jan McDonald – Managing Partner Originally from Baton Rouge, Louisiana, Jan McDonald relocated to the Demopolis area in 1991. Over the years, she has built an extensive career as a journalist and freelance writer, contributing her talents to various news outlets across Louisiana, Wisconsin, and Alabama. With her wealth of experience in journalism, Jan has honed her skills in reporting, writing, and storytelling, making her a versatile and respected voice in the field. As Managing Partner of The Watchman, Jan plays a crucial role in overseeing and producing editorial content for the publication. Her responsibilities include curating stories, ensuring high-quality journalism, and managing the day-to-day operations of the editorial team. Jan's dedication to maintaining the integrity of The Watchman's reporting, combined with her deep connection to the community, allows her to guide the publication with both passion and expertise.