Blanca Rubio
- Democratic
- Assemblymember
- District 48
Existing law, the Credit Services Act of 1984, defines and regulates the activities of credit services organizations. Existing law generally defines a credit services organization as a person who, for payment, performs specified credit-related services, such as improving a buyer's credit record and obtaining loans, but excludes specified persons and institutions, including an attorney licensed to practice law in this state rendering services within the course and scope of the practice of law unless the attorney is an employee of, or otherwise directly affiliated with, a credit services organization. Existing law requires credit services organizations to obtain a surety bond, as specified, before conducting business and requires that they register with the Attorney General, subject to a fee of $100. Among other things, existing law prohibits a credit services organization from receiving money before full and complete performance of the service the organization has agreed to perform and from failing to perform services agreed upon within 6 months. Existing law requires that credit services be provided pursuant to a written contract, that is required to contain specified statements, and, before the execution of a contract, a credit services organization must provide a prescribed information statement. Existing law requires the contract to contain a notice informing the buyer that the contract can be canceled within 5 days from the date the contract is signed. Existing law makes a violation of these prohibitions and requirements a misdemeanor. Existing law authorizes a buyer of services who is injured by a credit services organization's violation of the act, or its breach of contract, to bring an action for damages or injunctive relief, as specified. Existing law also authorizes any person, including a consumer credit reporting agency, to bring an action, as specified, for a violation of the act. This bill would replace the term "buyer" with the term "consumer" for purposes of describing a person utilizing the services of a credit services organization and would prescribe other definitions in this regard. The bill would require a credit services organization to provide a consumer a monthly statement detailing the services performed, and would require the organization to perform services agreed upon within 180 days of contracting for those services. Because the bill would expand the definition of a crime, it would impose a state-mandated local program. This bill would require the information statement and contract to inform the consumer that the contract can be canceled before midnight on the 5th working day after the consumer signs it. The bill would extend prohibitions on counseling a consumer to make untrue statements to other specified parties. Among other things, the bill would prohibit a credit services organization from submitting a dispute to a consumer credit reporting agency, creditor, debt collector, or debt buyer more than 180 days after the disputed account has been removed from the consumer's credit report or from failing to provide along with its first written communication to a credit reporting agency or data furnisher sufficient information to investigate a dispute of an account. The bill would also require a consumer credit reporting agency, creditor, debt collector, or debt buyer that knows that a consumer is represented by a credit services organization to communicate with the credit services organization, except as specified. Because the bill would expand the definition of a crime, it would impose a state-mandated local program. This bill would require a credit services organization to redact specified information in certain written communications. The bill would require a credit services organization to maintain certain information on file for 4 years. Because the bill would expand the definition of a crime, it would impose a state-mandated local program. The bill would revise information that must be provided before a credit services contract is executed, including a notice regarding the filing of complaints with the Attorney General. The bill would revise statements that a credit services contract must include. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Approved by the Governor.
Chaptered by Secretary of State - Chapter 965, Statutes of 2022.
Enrolled and presented to the Governor at 4 p.m.
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 73. Noes 0.).
Assembly Rule 77(a) suspended.
Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 4997.).
In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77.
From committee: Do pass. (Ayes 6. Noes 0.) (August 11).
Read second time. Ordered to third reading.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (June 28).
Withdrawn from committee.
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.
In Senate. Read first time. To Com. on RLS. for assignment.
Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 0. Page 4936.)
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 14. Noes 0.) (May 19).
In committee: Set, first hearing. Referred to suspense file.
Read second time and amended.
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 19).
Read second time and amended.
From committee: Amend, and do pass as amended and re-refer to Com. on P. & C.P. (Ayes 9. Noes 0.) (March 28).
Referred to Coms. on B. & F. and P. & C.P.
From printer. May be heard in committee March 20.
Read first time. To print.
Bill Text Versions | Format |
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AB2424 | HTML |
02/17/22 - Introduced | |
03/31/22 - Amended Assembly | |
04/25/22 - Amended Assembly | |
06/09/22 - Amended Senate | |
06/30/22 - Amended Senate | |
08/26/22 - Enrolled | |
09/30/22 - Chaptered |
Document | Format |
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03/24/22- Assembly Banking and Finance | |
04/15/22- Assembly Privacy and Consumer Protection | |
05/10/22- Assembly Appropriations | |
05/20/22- ASSEMBLY FLOOR ANALYSIS | |
06/27/22- Senate Judiciary | |
07/29/22- Senate Appropriations | |
08/13/22- Sen. Floor Analyses | |
08/23/22- ASSEMBLY FLOOR ANALYSIS |
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