Home improvement loans: right to cancel contracts.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill aims to protect consumers who take out home improvement loans by giving them a longer period – 7 days instead of 5 – to cancel the contract after signing. It requires lenders to take specific steps before a contract is finalized, including confirming the work is completed and obtaining written confirmation from the consumer. The bill also makes changes to existing laws regarding cancellation rights and disclosure requirements for contractors.
Key provisions
- Requires lenders to obtain oral confirmation of key terms of the home improvement loan contract.
- Requires lenders to make certain information available to consumers regarding the loan.
- Prohibits repayment obligations until the lender has taken specified actions (e.g., confirming completion of work).
- Extends the cancellation period from 5 days to 7 days for consumers and senior citizens.
- Modifies existing Civil Code sections regarding home solicitation contracts and cancellation rights.
- Adds a new title (1.87) to the Civil Code addressing home improvement loans.
- Specifies requirements for disclosures and notices related to home improvement loans.
- Addresses the timing of when repayment obligations can begin for home improvement loans.
Who is affected
- Consumers taking out home improvement loans
- Home improvement contractors
- Lenders offering home improvement loans
Bill text
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