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Committee considers SB 784 aimed at curbing predatory home‑improvement financing and dealer‑driven loans
Summary
SB 784 would require a lender confirmation call, extended cancellation rights and prevent lenders from collecting payments until financed home improvements are complete and operational. Supporters said the bill targets fraud that leaves vulnerable homeowners with liens and unusable systems; some industry groups urged technical changes.
Senator Rosso presented SB 784 (filed as the author spoke for a bill addressing predatory financing tied to home‑improvement projects such as solar, heat pumps and roofing). The bill responds to growing consumer complaints in which salespeople sign homeowners to loans on a tablet, collect funds through a lender, and disappear before systems are operational — leaving the homeowner with debt and lenders pointing to contractors.
Housing and Economic Rights Advocates (HERA) staff described clients with debilitating outcomes: an elderly housing‑insecure homeowner signed for roughly $85,000 in solar financing that she did not recall signing, and later received bills even after the panels were never activated. HERA attorneys urged requirements including a lender‑consumer confirmation call (without the salesperson present), disclosures of dealer fees, an extended cancellation period and a prohibition on starting loan repayment until the financed system is proven operational (for instance interconnection or other activation proof).
Sponsors said the bill is tailored to protect seniors, limited‑English speakers, low‑income homeowners and others who are prime targets for door‑to‑door sales and deceptive digital enrollment. Consumer Federation of California and legal‑aid organizations testified in support.
Industry witnesses including trade groups and several finance companies said they support many consumer protections but urged technical amendments. The solar and finance industry said lenders need time to price loans and complete underwriting; they asked for clarity on the timing of repayment (for example interconnection or a fixed number of days after installation). They also requested adjustments to the provisions that would impose lender liability for contractor misrepresentations where the lender may not have contractual control over the contractor.
Senator Rosso said the bill is not intended to impede legitimate financing and noted ongoing negotiations with industry stakeholders. The committee did not record a final vote in the transcript excerpt; the author asked for an aye vote when the bill returns.
