State agencies order financial institutions to explain delays, denials in wildfire claim payouts
SAN FRANCISCO (KGO) -- Since the Eaton and Palisades fires in January 2025, survivors made more than 160 complaints to the state that they were having difficulty accessing relief funds -- that they were being denied or delayed in getting the money needed to rebuild.
In response, the Business, Consumer Services and Housing Agency and the Department of Financial Protection and Innovation are ordering financial institutions to provide transparency on whether lenders "delayed payments to survivors, failed to provide a timely appeal process for decisions about releasing funds, or held insurance money even after a loan was fully paid."
The lenders must submit a written report that includes information on the size and distribution of the money they got from insurance companies to pay the survivors.
Consumers who believe that a financial service provider has broken the law governing their insurance claim payment are encouraged to submit a complaint to the Department of Financial Protection and Innovation.
Take a look at more stories and videos by 7 On Your Side.
7OYS's consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with consumer-related issues; we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Please review our FAQ here. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. If you do not wish us to contact them, please let us know right away, as it will affect our ability to work on your case. If we are able to assist, we will reach back out to you.
Top Stories
