Financial Protection

Updates required contact information for consumer complaints at money transmission locations. Requires notices in English and the primary language used by the business for advertising. Allows alternative notice formats for money transmission services on websites and mobile apps. Removes an outdated reporting requirement for deferred deposit transactions.

Expands state financial regulators' authority to enforce rules against deceptive practices by licensed entities. Maintains existing licensing exemptions while adding consumer protection enforcement oversight. Allows regulators to investigate financial misconduct regardless of an entity's license status.

Establishes a state program to insure affordable housing construction loans starting January 2027. Creates a dedicated state fund to provide loan guarantees and credit enhancements for housing projects. Requires annual oversight reports and caps insurance premiums at 2 percent of the loan value. Authorizes the state to take possession of defaulted properties and issue debentures to lenders.

Requires commercial financing providers to register with state regulators starting January 1, 2027. Prohibits lenders from requiring confessions of judgment or garnishing business accounts before default. Expands state financial protection laws to shield small businesses from predatory lending practices. Mandates commercial financing brokers to publicly display their average and maximum interest rates online.

Requires California prisons to install cooling systems and temperature monitors to protect inmates from extreme weather by 2026. Mandates annual staff training on preventing and managing heat-related illnesses in correctional facilities. Establishes emergency evacuation plans and protocols for extreme weather events in all state prisons. Creates a working group to oversee implementation and requires annual progress reports to state officials.

Authorizes rental car companies to use geofence technology to track vehicles moved abroad or to impound lots. Requires rental companies to notify renters 24 hours before activating any vehicle surveillance technology. Establishes that renters are not liable for vehicle theft if they return the ignition key and file a police report. Prohibits rental companies from using tracking technology to impose fines or surcharges on renters.

Extends the credit union notification period for officer suspensions from seven calendar days to seven business days. Requires supervisory committees to notify members when credit committee members or directors are suspended. Applies to all California-licensed credit unions regulated by the Commissioner of Financial Protection.

Requires online review platforms to let businesses opt out of having consumer reviews posted about them. Establishes new regulations for consumer review websites operating in California. Applies to all platforms that display consumer reviews or testimonials about businesses. Creates oversight of review platforms without specifying enforcement mechanisms or penalties.

Requires digital payment platforms to reimburse customers for losses caused by fraudulently induced transfers. Mandates platforms to investigate fraud claims within 10 business days and issue refunds within one day if fraud is confirmed. Establishes multiple ways for customers to submit fraud claims including mail, phone, email, and mobile apps. Requires platforms to notify customers of their fraud protection rights by July 1, 2026.

Establishes the California Community Reinvestment Act requiring banks to serve low-income communities. Requires financial institutions to undergo community service assessments every three years. Creates a rating system from Outstanding to Substantial Noncompliance for bank performance. Prohibits poorly-rated institutions from receiving state funds or contracts.

Simplifies mortgage financing requirements by allowing more flexible options for recording debtor names. Permits use of either full legal name or surname with first name on mortgage financing documents. Eliminates the requirement to match DMV identification card names exactly on financing statements.

Makes technical changes to provisions regarding the financial protection commissioner's annual report.

Requires lawsuit financing companies to obtain a state license and maintain a $250,000 surety bond. Establishes state oversight of lawsuit financiers to prevent fraud and protect consumers. Imposes civil penalties up to $250,000 for repeat violations by lawsuit financing companies. Mandates annual reporting and record-keeping requirements for all licensed lawsuit financiers.

Expands annual financial protection reporting to include activities of the Office of the Ombuds. Requires the Commissioner to publish detailed financial oversight actions on the department's website. Allows recommendations for improving financial product oversight and transparency in the marketplace.

Requires commercial lenders to use 'annual percentage rate' or 'APR' when disclosing financing costs. Prohibits using terms 'interest' or 'rate' unless referring to a properly calculated APR. Mandates APR disclosure whenever stating any financing charges or costs to potential borrowers. Establishes violations as unfair practices under state consumer protection laws.

Requires major social media platforms to add a clearly visible 'Delete Account' button in their settings menu. Prohibits platforms from using deceptive design tactics to prevent users from deleting their accounts. Mandates that account deletion requests automatically trigger deletion of all personal data under privacy laws. Requires platforms to allow account deletion across all interfaces including mobile apps and browsers.

Requires digital financial businesses to obtain state licenses by July 2026 to operate in California. Establishes new oversight rules for stablecoins including asset quality and security requirements. Mandates exchanges to implement comprehensive security and fraud prevention policies. Enhances consumer protection through expanded disclosure requirements and transaction safeguards.

Caps the application fee for digital financial asset business licenses at $5,000 to make licensing more accessible for cryptocurrency and digital asset companies. Requires digital asset businesses to obtain a license from the Department of Financial Protection and Innovation before operating in California after July 1, 2026. Maintains comprehensive application requirements including business history, criminal records, financial statements, and operational plans.

Authorizes banks to delay or block suspicious transactions when they suspect financial abuse of elderly or impaired adults. Allows financial institutions to notify family members or authorized contacts about suspected elder financial abuse. Protects banks from legal liability when taking actions to prevent suspected financial exploitation. Permits transaction holds for up to 30 business days while suspected elder financial abuse is investigated.