Bill > SB784

This bill proposes significant consumer protection reforms for home improvement loans and contracts. It 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. The bill introduces new requirements for lenders offering home improvement loans, including mandatory oral confirmations with consumers before loan execution. Lenders must verify key loan terms, ensure the consumer understands the contract, and provide information about the specific home improvements being financed. The bill also requires lenders to disclose dealer fees and provide consumers with detailed information about the loan, including potential financial risks and uncertainties. Consumers are given enhanced rights to request documentation about their home improvement loan, and lenders must maintain records for five years after the loan term. Importantly, the bill allows consumers to assert claims against lenders for misrepresentations made during loan solicitation and prevents repayment obligations from beginning until home improvements are confirmed as operational. The legislation aims to provide more transparency, protect consumers from potential predatory practices, and ensure borrowers fully understand the terms and implications of home improvement loans.

Budget and Finance, Business and Industry, Justice

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