Current law, CLRA, prohibits unfair methods of competition, unfair or deceptive acts.
Expanded in 2022 by requiring solicitations made by covered persons to consumer for financial products or services include disclosure in at least 18-point bold font.
Proposed bill requires specified disclosure statement to appear in 16-point bold type.
On front of envelope of mailed solicitation to consumer for consumer financial product.
Added provision that it is unfair/deceptive act or practice for mortgage broker/lender, to use home improvement contractor to negotiate terms of loan secured by residence.
When loan is being used to finance full/portion of home improvement contract.
Legislative History
On Feb. 13, 2024, bill was introduced in Senate; on Apr. 11, 2024, bill passed Senate.
On April 11, 2024, bill introduced in Assembly; on Jun. 10, 2024, passed Assembly.
On Jun. 12, 2024, bill was enrolled, presented to Governor.
Effectiveness
Bill SB-1096 becomes effective on Jan. 1, 2025.
Jun. 14, 2024 CAL LEG Bill Approval
On Jun. 14, 2024, CAL LEG reported bill approval by governor, became Chapter 20.
Regulators
CAL LEG
Entity Types
Bank; CNSM; IB
Reference
Ch. 20, 6/14/2024; Bill, SB1096, 6/12/2024; Citation: CAL LEG 3-4-1.5-3-1770;
