Assembly committee advances Durazo bill to curb predatory door-to-door home-improvement financing (SB 784)

The Assembly Banking and Finance Committee on Oct. 26 passed SB 784, a Durazo-authored bill that aims to curb predatory door-to-door financing for home improvements by requiring lender-borrower confirmation, improving document access and disclosure of dealer fees, and extending cancellation rights when work is not complete or operational.

Sen. Durazo said she negotiated a "major compromise" with solar industry stakeholders and conceded a lender-liability provision previously central to the bill. "The goal is to put some simple guardrails around a niche industry that has been operating in the shadows for too long," she said, describing repeated complaints about contractors recruiting homeowners at their front doors, securing signatures on tablets and arranging financing that leaves homeowners with debts tied to unfinished or nonworking projects.

Natasha Blazer of Housing and Economic Rights Advocates recounted a client, "Mr. Lopez," a 74-year-old who said he was fraudulently induced to sign electronic documents for multiple projects and later received bills from seven lenders for loans he said he never agreed to. Blazer told the committee the bill aims to prevent such outcomes by ensuring consumers only pay after work is complete and operational and by increasing transparency around dealer fees.

Andrew Kushner of the Center for Responsible Lending highlighted the bill's dealer-fee disclosure provision, saying dealer fees are often paid "by the installer" but passed to borrowers without their knowledge and that the provision gives consumers key information about the loan's true cost.

The committee accepted amendments the author offered and several solar-industry groups said they had moved from opposition to neutral. Wells Fargo and several banking and industry trade groups registered opposition or concerns, saying some retail or private-label products could be unintentionally affected and asking for carve-outs or technical fixes. The author said she has convened meetings with Wells Fargo and other stakeholders and pledged to continue negotiating changes that do not undermine the bill's consumer protections.

Committee members questioned the bill's scope, including whether loans consummated on a consumer's personal device or in non-door-to-door marketing contexts would be covered. The author and supporters said the bill targets a specific category defined by California law as "home solicitation sales" and loans where funds are released directly to the contractor; the bill includes permit-signoff or a reasonable operational confirmation as triggers for when repayment may begin.

SB 784 passed the committee and was referred to the Assembly Judiciary Committee.