Bill > SB784

This bill enhances consumer protections for home improvement loans by establishing new regulations for lenders and borrowers. The bill extends the right to cancel home improvement contracts from 3 to 5 business days for most consumers and from 5 to 7 business days for senior citizens, effective January 1, 2026. It requires lenders to take several important steps before finalizing a home improvement loan, including obtaining a copy of the home improvement contract, conducting a detailed oral confirmation call with the consumer in their preferred language, and reviewing key loan terms in plain language. The lender must explain the home improvements being financed, confirm the consumer's ability to pay, and clarify that any estimated cost savings are not guaranteed. Lenders must also provide consumers with the option to request various loan-related documents, such as financing agreements, contracts, payment records, and completion certificates, within 30 business days of a written request. Additionally, the bill prohibits consumers from being required to begin loan repayments until the home improvements are confirmed as operational and specifies that lenders cannot report the loan to credit reporting agencies until the improvements are complete and repayment obligations have commenced.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB784