CaliforniaCalifornia Consumer Financial Protection Law: commercial financing.
What it does
Existing law, the California Consumer Financial Protection Law (CCFPL), establishes certain consumer protections relating to consumer financial products, practices, and services, including, among others, making it unlawful for covered persons or service providers, as defined, to, among other acts, engage in unlawful, unfair, deceptive, or abusive acts or practices with respect to consumer financial products or services. Existing law establishes that the purpose of the CCFPL is to promote consumer welfare, fair competition, and wealth creation in this state by promoting, among other things, nondiscriminatory access to consumer financial products and services that are understandable and not unfair, deceptive, or abusive. Existing law authorizes the Department of Financial Protection and Innovation, under the direction of the Commissioner of Financial Protection and Innovation, to prescribe rules regarding registration requirements applicable to a covered person in the business of offering or providing a consumer financial product or service, as defined, and rules requiring the payment of registration fees.
More detail
This bill would expand the purposes of the CCFPL to include the protection of small businesses from abusive financial practices, as specified. The bill would require the department to prescribe rules regarding registration requirements applicable to covered persons seeking to offer or provide commercial financing products, as defined and specified. The bill would, commencing January 1, 2027, prohibit a person from engaging in the business of offering to provide or providing commercial financing products without first registering with the commissioner, as specified. The bill would impose various duties on commercial financing providers and brokers, including, among other things, prohibiting the taking of a confession of judgment or power of attorney at any time before a default, as specified. The bill would make various conforming changes.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Feb 2Returned to Secretary of Senate pursuant to Joint Rule 56.Latest
- 2025
- May 23May 23 hearing: Held in committee and under submission.
- May 16Set for hearing May 23.
- May 5May 5 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 29Set for hearing May 5.
- Apr 24Read second time and amended. Re-referred to Com. on APPR.Major
- Apr 23From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0. Page 837.) (April 22).Major
- Apr 22
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Apr 9Set for hearing April 22.
- Apr 8From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 679.) (April 7). Re-referred to Com. on JUD.Minor
- Apr 7
- Vote recorded Do pass, but first be re-referred to the Committee on [Judiciary]. Result: pass.Upper
- Apr 2Re-referred to Coms. on B. & F.I. and JUD.Minor
- Mar 28Set for hearing April 7 in B. & F.I. pending receipt.
- Mar 25From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.Major
- Mar 12Referred to Com. on RLS.Minor
- Feb 24Read first time.Minor
- Feb 24From printer. May be acted upon on or after March 24.
- Feb 21Introduced. To Com. on RLS. for assignment. To print.Introduced