Newsom Signs Executive Order Denying Debt Collectors From Cashing In

Today, California Governor Gavin Newsom announced that 21 out of the 24 major student loan providers in California have placed a 90 day pause on payments to help those with debt during the COVID-19 pandemic.

The order will support more than 1.1 million Californians with student loan debt without affecting their credit or late fees and will be reevaluated once the 90 days are over. He also announced another executive order that, “Denies the ability for debt collectors to garnish your cares act dollars,” however, “If you owe child care or spousal support this does not apply to you.”

Newsom continued, “If you are an individual that receives a check but has a responsibility to a victim or a victims account that will continue as well…But, for everyone else no debt collector can take those direct payments any longer in the state of California and we are assured that you will be able to claw back any of those contributions from the feds that perhaps have been taken away from those same debt collectors.” 

Remaining on the topic of debt, Governor Newsom took the time to express his debt of gratitude to the 16 doctors from California flying to New York today to, “Work with the city…and their hospital and health system.” UCSF already sent 20 doctors to New York creating a total of 36 doctors from California providing help on the East Coast.

Newsom made it clear residents should not fear California having an inadequate number of doctors due to the dozens helping in New York. He explained, “One of the great benefits of these doctors going out on the front lines in New York is what they will bring back; which is a deep understanding and knowledge of what’s happening in the most acute point of the crisis in this country.”

The doctors will be working for two weeks and then will remain in quarantine for two weeks, totaling one month of sacrifice for an incredible opportunity for all of us in California.

Yesterday, Newsom said Trump promised California 100,000 swabs to test individuals for coronavirus this week. The governor received word that 90,000 are arriving in the next day or so and according to Trump, the missing 10,000 will be included in next week’s shipment of 250,000 swabs.

Newsom emphasized that California is not out of the woods as yesterday was deadliest day in the state with 115 deaths due to COVID-19.

Additionally, yesterday there was an 8.5% increase in deaths and a 5.6% increase in people who tested positive with the virus. However Newsom was pleased to report a drop in four categories:

  1. 0.4% down in number of hospitalizations
  2. 1.2% down in ICU patients
  3. PUI (person under investigations) dropped for hospitalizations
  4. PUI (person under investigations) dropped for ICU patients

Newsom closed his briefing letting people know that even though this weekend is supposed to be the nicest since January it is necessary to remain inside. If people venture out and do not practice physical distancing Newsom fears he is going to have to announce a rise in death and positive COVID-19 cases next week.

Newsom also thanked the 22,000 people who signed up for in the first day and reminded viewers California has distributed 3.94 billion dollars of unemployment insurance to 3.9 million individuals since March 15th.

Finally, he explained there will be no such things as reopening back to normal and instead will be, “Reopening with conditions” because “It’s not individuals, it’s individual acts on behalf on the collective community that will save lives and get the economy back much sooner,” Newsom said.

Please visit for more loan programs, including the new micro loans for businesses that fall through the cracks of the other loan options.


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