{
  "id": 14774096,
  "title": "‘It’s unacceptable’: California orders banks and credit unions to report their handling of insurance payouts to LA wildfire victims",
  "url": "https://urgent.news/2026/10/15/its-unacceptable-california-orders-banks-and-credit-unions-to-report",
  "topic": "world",
  "section": "World",
  "published": "2026-10-15T19:08:22.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/10/15/california-palisades-wildfires-insurance-payouts-victims/"
  },
  "original_language": "en",
  "account": "California has mandated that banks and credit unions report their processes for managing insurance payouts to victims of the 2025 Los Angeles-area wildfires, according to a directive issued on Thursday. The California Business and Consumer Services Agency, along with the Department of Financial Protection and Innovation, aim to expedite the release of insurance proceeds held by lenders before they are distributed to homeowners. The Department of Financial Protection and Innovation (DFPI) has logged over 160 complaints regarding payment delays or other issues since January of 2025. State officials are providing lenders with a two-week window to submit their reports.\n\nRohit Chopra, the secretary of the Business and Consumer Services Agency, remarked, \"It’s unacceptable that after running through a gauntlet of paperwork to file insurance claims, some wildfire survivors still have not gotten access to the funds they need to rebuild.\" The Palisades and Eaton fires destroyed over 16,000 homes and structures in and around Los Angeles, with few homes being rebuilt since. Governor Gavin Newsom addressed this issue in July by writing a letter to banking and credit union associations, highlighting instances where lenders hold onto payout funds for weeks before releasing them. He subsequently directed the state to gather data on lenders who take more than 10 days to disburse insurance proceeds and lack a plan to expedite the process.\n\nLegislation was enacted last year that requires banks and credit unions to pay interest on insurance payments held by them. Governor Newsom emphasized on Thursday that the state is taking decisive steps to assist families and business owners in rebuilding. \"The last thing survivors need is unnecessary red tape, delays, and barriers standing between them and the relief they deserve,\" he stated in a statement. There has been ongoing debate over who should bear the financial burden of California's wildfires throughout Governor Newsom's tenure, which began in 2019 following the deadliest and most destructive fire in state history. During his final legislative session, Newsom proposed a plan to shift more costs onto home insurers, but the proposal was abandoned when lawmakers could not reach an agreement. KC Mohseni, the Commissioner of DFPI, stated that the department will take action, including potential fines, against banks and credit unions that delay insurance payouts unnecessarily. Mohseni emphasized the importance of lenders not obstructing homeowners and families in their recovery efforts.",
  "summary": "Regulators have received over 160 complaints about delayed payouts and are warning lenders they could face fines if they don't move faster",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Winnipeg Free Press",
        "title": "California orders lenders to report on their handling of insurance payouts to LA fire survivors",
        "url": "https://urgent.news/2026/10/15/california-orders-lenders-to-report-on-their-handling-of-insurance",
        "published": "2026-10-15T17:02:10.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}