Financial Protection

Updates required consumer complaint notices at money transmission locations with new contact information. Requires notices to be posted in English and the primary language used by the business. Authorizes alternative notice formats for money transmission services operating through websites or apps. Removes an outdated 2007 reporting requirement for deferred deposit transactions.

Clarifies exemption boundaries under the Financial Code to preserve DFPI enforcement. Enumerates DFPI-licensed activities that may be exempt while enforcement remains. Maintains bank and credit-union exemptions when acting under federal or state licenses.

Establishes a state credit enhancement program to stimulate private investment in affordable housing construction. Creates a dedicated state fund to insure construction and permanent loans for affordable housing projects. Authorizes the California Housing Finance Agency to insure loans with premium charges capped at 2 percent. Requires annual oversight reports and limits program authorization to prevent excessive financial risk.

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 companies to use geofence technology to detect vehicle movements. Creates a presumption of no theft liability if key is returned and police report filed within 24 hours. Requires advance notice before surveillance activation and 12‑month recordkeeping. Limits surveillance use to defined purposes and enforcement via existing laws.

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 filing requirements by allowing more flexibility in how debtor names are recorded. Permits using either a debtor's full name or surname and first name on mortgage documents. Removes the requirement that debtor names must exactly match DMV identification records. Takes effect July 14, 2025 with no transition period required.

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 the comprehensive report on the department's website. Maintains existing requirements to report on consumer complaints, enforcement actions, and fintech activities.

Requires clear APR disclosures and bans deceptive use of interest terms. Requires APR be stated for a specific offer during the application process. Permits non-deceptive use of interest or rate when APR is fixed or floating as a margin over an index. Enforcement uses CFL for CFL deals and CFP for other deals.

Requires large social platforms earning over $100M to provide a clear Delete Account button. Provides steps to delete the account and information and prohibits dark patterns. Enforcement relies on the CCPA; no new penalties or state funding are created.

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.