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CSLB signals legislative push to tighten lender payments to contractors
Summary
Staff described recurring consumer complaints where lenders pay contractors directly (notably in solar and ADU projects), outlined a draft legislative proposal and said CSLB will meet DFPI and other partners to explore solutions to protect consumers and enable enforcement.
CSLB staff briefed the board on recurring problems where lenders pay contractors or subcontractors directly, leaving consumers with limited leverage when contractors fail to complete work. Staff said this pattern has emerged in solar projects and credits, and is appearing in accessory dwelling unit (ADU) projects…
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