The California Financing Law (CFL) generally regulates consumer loan lending practices by finance lenders, brokers, and program administrators. The CFL makes a willful violation of its provisions a crime. This bill would prescribe requirements on loans provided to consumers for the purpose of advancing residential real property rent payments for certain finance lenders and servicers, including prohibiting more than 2 installment payments for the loans, specifying the amount that may be charged for late fees, prescribing disclosure requirements, and prohibiting advertising 0% APR for the loan unless specified conditions are met. By expanding the scope of a crime under the CFL, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the California Financing Law, generally regulates the business of finance lenders and brokers and prohibits any person from engaging in those businesses without obtaining a license from the Commissioner of Financial Protection and Innovation. Existing law also imposes various requirements on licensees who offer or sell commercial loans, as defined. Existing law prohibits a person that receives compensation in connection with a referral of a commercial loan from making a materially false or misleading statement or representation to a borrower about the terms or conditions of a prospective loan or from engaging in various other deceptive and unfair acts. A willful violation of the California Financing Law is a crime, except as specified. This bill would prohibit a financial institution from engaging in unfair, deceptive, or abusive acts or practices in the use of mortgage trigger lead information, defined to include certain consumer credit information related to a real estate-secured loan application. The bill would provide that a violation of these provisions occurs if the financial institution takes various acts, including, among others, failing to clearly and conspicuously disclose to the consumer, at the initial point of contact, that the financial institution is not affiliated with the consumer's original lender or broker. The bill would make a violation of these provisions an unlawful, unfair, or deceptive business practice under specified law. The bill would authorize the Attorney General, the Commissioner of Financial Protection and Innovation, and local prosecutors to enforce this section. The bill also would authorize a consumer who suffers a violation of these provisions to bring a private right of action for damages, injunctive relief, and reasonable attorney's fees. By expanding the scope of a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
(1) Existing law, the Money Transmission Act, generally regulates money transmission businesses. The act requires each licensee or agent to prominently post on the premises of each branch office that conducts money transmission a specified notice. This bill would change the contact information required to be provided in that notice. (2) Existing law, the California Deferred Deposit Transaction Law, generally regulates the offering, originating, and making of deferred deposit transactions. Existing law required a report regarding the implementation of that law to be submitted to the Governor and the Legislature on December 1, 2007, as specified. This bill would repeal that reporting provision.
The California Financing Law generally regulates the business of finance lenders and brokers and prohibits any person from engaging in those businesses without obtaining a license from the Commissioner of Financial Protection and Innovation. The law also imposes various requirements on licensees who offer or sell commercial loans, as defined. This bill would prohibit a person from engaging in the business of lawsuit financing, as defined, without obtaining a license from the commissioner, and would generally regulate the business of lawsuit financiers, as specified. The bill would require a licensee who is a lawsuit financier, as defined, to maintain a surety bond, as prescribed. The bill would include lawsuit financing in the definition of "commercial loan." The bill would make willful violations of the California Financing Law by a licensee who is a lawsuit financier subject to a civil penalty, as specified.
Existing law, the Elder Abuse and Dependent Adult Civil Protection Act, establishes various procedures for the reporting, investigation, and prosecution of elder and dependent adult abuse. Existing law defines financial abuse for those purposes and provides that it occurs when, among other instances, a person or entity takes, secretes, appropriates, obtains, or retains, or assists in taking, secreting, appropriating, obtaining, or retaining, real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both. Existing law requires a person or entity to be deemed to have taken, secreted, appropriated, obtained, or retained property for a wrongful use if, among other things, the person or entity takes the property and the person or entity knew or should have known that the conduct is likely to be harmful to the elder or dependent adult. Existing law requires the court to award specified costs if a defendant is found liable for financial abuse, as specified. Existing law makes the failure to report, or impeding or inhibiting a report of, among other things, financial abuse of an elder or dependent adult, in violation of certain reporting requirements a misdemeanor. This bill, commencing January 1, 2026, would require a covered person or entity, as defined, to establish an emergency financial contact program for covered accountholders, as specified. The bill would require a covered person or entity to notify a joint accountholder or an emergency financial contact, if one has been provided, if the covered person or entity should reasonably suspect a covered transaction requested by the covered accountholder is the result of financial abuse. The bill would also require a covered person or entity to delay, by at least 3 business days, a covered transaction initiated by a covered accountholder if the covered person or entity should reasonably suspect the transaction is the result of financial abuse and would make a covered person or entity immune from administrative, civil, or other liability that might arise from a delayed or refused transaction. The bill would authorize a covered person or entity to implement an emergency financial contact program for an accountholder who is not an elder or dependent adult, as specified. Existing law provides for the award of attorney's fees and costs, and damages, to a plaintiff when it is proven by a preponderance of the evidence that the defendant is liable for financial abuse of an elder or dependent adult. This bill would, if proven by a preponderance of the evidence, subject a covered person or entity to liability for actual and noneconomic damages, for certain specified violations. The bill would prohibit a nonmanagerial employee of a covered entity or a covered person who is an employee of a covered entity who meets certain specifications from being held personally liable in their individual capacity for specified violations. The bill would make these provisions severable, except as specified.
