Financial Protection

Updates required contact information for consumer complaints at money transmission locations. Requires notices in English and the primary language used by the business for advertising. Allows alternative notice formats for money transmission services on websites and mobile apps. Removes an outdated reporting requirement for deferred deposit transactions.

Expands state financial regulators' authority to enforce rules against deceptive practices by licensed entities. Maintains existing licensing exemptions while adding consumer protection enforcement oversight. Allows regulators to investigate financial misconduct regardless of an entity's license status.

Establishes a state mortgage insurance program to stimulate private investment in multifamily housing construction. Creates a continuously appropriated insurance fund supported by premium charges up to 2% of loan value. Authorizes the California Housing Finance Agency to insure construction loans and provide credit enhancements. Takes effect in 2027 pending voter approval of a related constitutional amendment.

Requires commercial financing providers to register with state regulators starting January 1, 2027. Prohibits lenders from requiring confessions of judgment or garnishing business accounts before default. Expands state financial protection laws to shield small businesses from predatory lending practices. Mandates commercial financing brokers to publicly display their average and maximum interest rates online.

Requires California prisons to install cooling systems and temperature monitors to protect inmates from extreme weather by 2026. Mandates annual staff training on preventing and managing heat-related illnesses in correctional facilities. Establishes emergency evacuation plans and protocols for extreme weather events in all state prisons. Creates a working group to oversee implementation and requires annual progress reports to state officials.

Authorizes rental car companies to use location tracking when vehicles leave the country or enter impound yards. Requires rental companies to notify customers 24 hours before activating vehicle tracking technology. Protects renters from theft liability when they return the ignition key and file a police report within 24 hours. Prohibits rental companies from using tracking data to impose fines or monitor regular vehicle usage.

Extends the credit union notification period for officer suspensions from seven calendar days to seven business days. Requires supervisory committees to notify members when credit committee members or directors are suspended. Applies to all California-licensed credit unions regulated by the Commissioner of Financial Protection.

Requires online review platforms to let businesses opt out of having consumer reviews posted about them. Establishes new regulations for consumer review websites operating in California. Applies to all platforms that display consumer reviews or testimonials about businesses. Creates oversight of review platforms without specifying enforcement mechanisms or penalties.

Requires digital payment platforms to reimburse customers for losses caused by fraudulently induced transfers. Mandates platforms to investigate fraud claims within 10 business days and issue refunds within one day if fraud is confirmed. Establishes multiple ways for customers to submit fraud claims including mail, phone, email, and mobile apps. Requires platforms to notify customers of their fraud protection rights by July 1, 2026.

Establishes a California Community Reinvestment Act requiring financial institutions to meet local community banking needs. Requires financial institutions to undergo community service assessments every three years with public ratings. Prohibits institutions rated 'needs improvement' or 'substantial noncompliance' from receiving state funds. Creates a Community Reinvestment Fund with penalties up to $100,000 for non-compliant institutions.

Simplifies mortgage filing requirements by allowing more flexible naming options for individual debtors. Permits use of either full legal name or surname with first name on financing statements. Eliminates the requirement to exactly match DMV license names on mortgage documents.

Makes technical changes to provisions regarding the financial protection commissioner's annual report.

Requires lawsuit financing companies to obtain a state license and post a $250,000 surety bond. Establishes civil penalties up to $250,000 for companies that violate financing regulations. Creates oversight of lawsuit financiers to prevent fraud and exploitation of consumers. Expands state regulation to include lawsuit financing under commercial lending laws.

Expands annual financial protection reporting to include activities of the Office of the Ombuds. Requires the Commissioner to publish detailed financial oversight actions on the department's website. Allows recommendations for improving financial product oversight and transparency in the marketplace.

Requires commercial financing providers to use standardized APR terminology when disclosing financing costs. Mandates annual reporting of estimated versus actual APR rates to state regulators. Prohibits using terms 'interest' or 'rate' unless they reflect true annual percentage rates. Expands enforcement authority over commercial financing violations under state consumer protection laws.

Requires social media platforms to display account deletion options on every screen visible to users. Mandates large social media platforms earning over $100 million annually to comply with the account deletion rules. Allows platforms to verify deletion requests through email, text, or phone confirmation. Prohibits platforms from creating barriers that prevent users from deleting their accounts.

Exempts in-game digital currencies from digital financial asset regulations to reduce gaming industry burden. Expands oversight of stablecoins by requiring issuers to meet new security and asset-backing requirements. Grants state regulators new powers to approve and revoke stablecoins based on consumer protection standards. Requires public disclosure of approved stablecoins on the state financial regulator's website.

Caps the application fee for digital financial asset business licenses at $5,000 to make licensing more accessible for cryptocurrency and digital asset companies. Requires digital asset businesses to obtain a license from the Department of Financial Protection and Innovation before operating in California after July 1, 2026. Maintains comprehensive application requirements including business history, criminal records, financial statements, and operational plans.

Authorizes banks to delay or block suspicious transactions to protect elderly and dependent adults from financial abuse. Allows financial institutions to notify family members and authorized parties when elder financial abuse is suspected. Provides banks legal protection when refusing transactions they reasonably believe may involve elder exploitation. Permits holds on suspicious transactions for up to 30 business days while potential fraud is investigated.