California Consumer Financial Protection Law: commercial financing.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill expands the California Consumer Financial Protection Law to include protections for small businesses from abusive commercial financing practices. It requires commercial financing providers to register with the Department of Financial Protection and Innovation starting January 1, 2027, and prohibits taking confessions of judgment or powers of attorney before a default. The bill also imposes duties on commercial financing providers, such as prohibiting certain contract provisions and requiring clear display of annual percentage rates.
Key provisions
- Requires commercial financing providers to register with the Department of Financial Protection and Innovation.
- Prohibits taking confessions of judgment or powers of attorney before a default.
- Imposes duties on commercial financing providers, including restrictions on contract terms.
- Establishes a registration process and fees for commercial financing products.
- Requires commercial financing providers to clearly display average and maximum annual percentage rates.
- Expands the scope of the California Consumer Financial Protection Law to include small businesses.
- Makes conforming changes to existing financial code sections.
- Addresses definitions related to commercial financing and related terms.
Who is affected
- Commercial financing providers
- Small businesses
- Consumers
- California residents
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours