CaliforniaHome improvement loans: right to cancel contracts.
What it does
(1) Existing law generally regulates various types of consumer credit contracts and transactions, including consumer loans, home solicitation contracts and offers, and home improvement businesses and contracts.
More detail
This bill would regulate home improvement loans. The bill would require a lender to take specified actions before a consumer executes a contract for a home improvement loan, including obtaining oral confirmation of key terms of the home improvement loan contract, as defined and specified. The bill would require a lender that offers or provides a home improvement loan to make certain information available to the consumer and would prescribe how a lender must respond to requests for information from a consumer. The bill would prohibit a consumer's repayment obligations under a home improvement loan, as specified, until the lender has taken specified actions.
(2) Existing law authorizes a buyer to cancel certain home solicitation contracts or offers until midnight of the 3rd business day after the day on which the buyer signs an agreement or offer to purchase that complies with specified requirements. Existing law authorizes a buyer to cancel a home solicitation contract written for certain home improvement work until midnight of the 3rd business day after the buyer receives a signed and dated copy of the contract or offer to purchase that complies with specified requirements. Existing law requires contracts for a home solicitation contract or offer to include a notice of cancellation form with specified statements as to the buyer's right to cancel. Existing law permits a buyer to provide a seller an express waiver to this right to cancel, if the contract meets other specified requirements.
Existing law requires specific provisions and requirements for home improvement contracts, as defined, that are not governed by the provisions described above. Existing law requires these contracts to include a notice regarding the buyer's 3-day right to cancel.
Existing law provides an alternate 5-day period of time to cancel the contracts or offers described above if the buyer or property owner is a senior citizen, as defined, for contracts entered into, or offers to purchase conveyed, on or after January 1, 2021.
This bill would extend those 3-day and 5-day periods to 5-day and 7-day periods, respectively. The bill would also make conforming changes. The bill would apply these new extended periods to transactions on or after January 1, 2026.
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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
- Aug 13August 13 hearing: Held in committee and under submission.Latest
- 2025
- Aug 29August 29 hearing postponed by committee.
- Aug 20August 20 set for first hearing. Placed on APPR. suspense file.
- Jul 17Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 16From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (July 15).Major
- Jul 15
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jul 8From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 1.) (July 7). Re-referred to Com. on JUD.Minor
- Jul 7
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary]. Result: pass.Lower
- Jun 17June 23 hearing postponed by committee.
- Jun 9Referred to Coms. on B. & F. and JUD.Minor
- Jun 3In Assembly. Read first time. Held at Desk.Minor
- Jun 2Read third time. Passed. (Ayes 27. Noes 2. Page 1379.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading SB784 Durazo et al. Result: pass.Upper
- May 23Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 23From committee: Do pass. (Ayes 5. Noes 0. Page 1213.) (May 23).Minor
- May 16Set for hearing May 23.
- May 12May 12 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 6Set for hearing May 12.
- May 1Read second time and amended. Re-referred to Com. on APPR.Major
- Apr 30From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0. Page 943.) (April 29).Major
- Apr 29
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Apr 11Set for hearing April 29.
- Apr 7Read second time and amended. Re-referred to Com. on JUD.Major
- Apr 3From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 63.) (April 2).Major
- Apr 2
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]. Result: pass.Upper
- Mar 18Set for hearing April 2.
- Mar 12Referred to Coms. on B. & F.I. and JUD.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