Civil Code — Part 4 | CIV — United States — California law | Esheria

Civil Code

Part 4 of 20 · provisions 601–800

This section names the act the Civil Code of the State of California and says it is divided into four parts.

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Occupancy can create title, but that title is subject to listed superior claims and does not by itself let the occupant bring or keep a quiet title action unless prescription has matured the title. Occupancy for the time required by the Code of Civil Procedure can create title by prescription, except for property dedicated to public use or owned by the state or a public entity. A use of land does not become a prescriptive easement if the owner posts notice signs at each entrance or every 200 feet along the boundary. Public use of private property does not create a permanent vested right unless there is an express written irrevocable offer of dedication that is accepted as required; special rules apply to certain coastal property. A person who in good faith and by mistake affixes improvements to another’s land may remove them, but must pay damages as required.

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Provisions of Civil Code

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  1. 1748.80.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. )

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    This section defines key terms used in the chapter, including hosting platform, hotel, third-party booking service, and short-term rental.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. ) ## 1748.80. For purposes of this chapter: (a) “Hosting platform” has the same meaning as defined in Section 22590 of the Business and Professions Code. (b) (1) “Hotel” means a hotel, motel, bed and breakfast inn, or other similar transient lodging establishment located in this state. (2) “Hotel” does not include a residential hotel, as defined in Section 50519 of the Health and Safety Code. (c) “Third-party booking service” means a person that facilitates the booking of a hotel room or short-term rental in this state. (d) “Short-term rental” means a residential dwelling, or any portion of a residential dwelling, that is rented to a person or persons for 30 or fewer consecutive days and that is located in this state. (Added by Stats. 2023, Ch. 718, Sec. 3. (SB 644) Effective January 1, 2024.)
  2. 1748.81.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. )

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    Certain booking businesses must let covered California reservations be canceled without penalty for 24 hours after confirmation, if the booking was made at least 72 hours before check-in.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. ) ## 1748.81. A hosting platform, hotel, third-party booking service, or short-term rental shall allow a reservation for a hotel accommodation or a short-term rental located in California to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in. (Added by Stats. 2023, Ch. 718, Sec. 3. (SB 644) Effective January 1, 2024.)
  3. 1748.82.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. )

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    If a consumer cancels a reservation under Section 1748.81, the listed provider must refund all amounts paid, including optional service fees, to the original payment method within 30 days.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. ) ## 1748.82. (a) If a consumer cancels a reservation pursuant to Section 1748.81, the hosting platform, hotel, third-party booking service, or short-term rental shall issue a refund to a consumer of all amounts paid to the hosting platform, hotel, third-party booking service, or short-term rental to the original form of payment within 30 days of the cancellation of the reservation. (b) The refund required by this section shall include a refund of all fees charged to the consumer for optional services. (Added by Stats. 2023, Ch. 718, Sec. 3. (SB 644) Effective January 1, 2024.)
  4. 1748.83.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. )

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    Only specified public prosecutors may bring an action for a violation of this chapter, and the court must assess a civil penalty of up to $10,000 per violation.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. ) ## 1748.83. (a) An action for a violation of this chapter may be brought only by any of the following: (1) The Attorney General. (2) A district attorney. (3) A city attorney of a city having a population in excess of 750,000. (4) A county counsel of any county within which a city has a population in excess of 750,000. (5) With the consent of the district attorney, a city prosecutor in a city that has a full-time city prosecutor. (b) In an action alleging a violation of this chapter, the court shall assess a civil penalty of not more than ten thousand dollars ($10,000) for each violation. In determining the amount of the civil penalty, the court shall consider any of the relevant circumstances presented by any of the parties to the case, including, but not limited to, all of the following: (1) The nature and seriousness of the misconduct. (2) The number of violations. (3) The persistence of the misconduct. (4) The length of time over which the misconduct occurred. (5) The willfulness of the misconduct. (6) The defendant’s assets, liabilities, and net worth. (c) Each day that a defendant remains in violation of this chapter shall constitute a single violation. (d) The duties and obligations imposed by this chapter are cumulative with any other duties or obligations imposed under other law and shall not be construed to relieve any party from any duties or obligations imposed under other law. (Added by Stats. 2023, Ch. 718, Sec. 3. (SB 644) Effective January 1, 2024.)
  5. 1748.84.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. )

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    This chapter does not apply to certain reservations, including negotiated rates not advertised to the public, reservations confirmed before July 1, 2024, and bookings where the specific hotel or short-term rental is disclosed only after confirmation.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3.5. Consumer Refunds [1748.40 - 1748.84] ( Title 1.3.5 added by Stats. 2019, Ch. 130, Sec. 1. ) ## CHAPTER 2. Hotel and Private Residence Rental Reservation Refunds [1748.80 - 1748.84] ( Chapter 2 added by Stats. 2023, Ch. 718, Sec. 3. ) ## 1748.84. This chapter does not apply to a reservation that meets any of the following criteria: (a) The reservation was made for a negotiated rate that was not advertised, or otherwise made available, for booking by the general public. (b) The reservation is for a hotel accommodation or short-term rental reservation that was confirmed before July 1, 2024. (c) The reservation is one in which the specific hotel or short-term rental is not disclosed to the consumer until after the booking is confirmed. (Added by Stats. 2023, Ch. 718, Sec. 3. (SB 644) Effective January 1, 2024.)
  6. 1748.9.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3. CREDIT CARDS [1747 - 1748.95] ( Title 1.3 added by Stats. 1971, Ch. 1019. )

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    A credit card issuer that extends credit using a preprinted check or draft must give specified disclosures on the front of an attached notice.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3. CREDIT CARDS [1747 - 1748.95] ( Title 1.3 added by Stats. 1971, Ch. 1019. ) ## 1748.9. (a) A credit card issuer that extends credit to a cardholder through the use of a preprinted check or draft shall disclose on the front of an attachment that is affixed by perforation or other means to the preprinted check or draft, in clear and conspicuous language, all of the following information: (1) That “use of the attached check or draft will constitute a charge against your credit account.” (2) The annual percentage rate and the calculation of finance charges, as required by Section 226.16 of Regulation Z of the Code of Federal Regulations, associated with the use of the attached check or draft. (3) Whether the finance charges are triggered immediately upon the use of the check or draft. (Added by Stats. 1999, Ch. 171, Sec. 1. Effective January 1, 2000. Operative July 1, 2000, by Sec. 2 of Ch. 171.)
  7. 1748.95.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3. CREDIT CARDS [1747 - 1748.95] ( Title 1.3 added by Stats. 1971, Ch. 1019. )

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    A credit card issuer must give certain application records to a requesting person after a qualifying police report is provided, free of charge, within 10 business days.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.3. CREDIT CARDS [1747 - 1748.95] ( Title 1.3 added by Stats. 1971, Ch. 1019. ) ## 1748.95. (a) (1) Upon the request of a person who has obtained a police report pursuant to Section 530.6 of the Penal Code, a credit card issuer shall provide to the person, or to a law enforcement officer specified by the person, copies of all application forms or application information containing the person’s name, address, or other identifying information pertaining to the application filed with the credit card issuer by an unauthorized person in violation of Section 530.5 of the Penal Code. (2) Before providing copies pursuant to paragraph (1), the credit card issuer shall inform the requesting person of the categories of identifying information that the unauthorized person used to complete the application and shall require the requesting person to provide identifying information in those categories and a copy of the police report. (3) The credit card issuer shall provide copies of all forms and information required by this section, without charge, within 10 business days of receipt of the person’s request and submission of the required copy of the police report and identifying information. (b) (1) Before a credit card issuer provides copies to a law enforcement officer pursuant to paragraph (1) of subdivision (a), the credit card issuer may require the requesting person to provide them with a signed and dated statement by which the person does all of the following: (A) Authorizes disclosure for a stated period. (B) Specifies the name of the agency or department to which the disclosure is authorized. (C) Identifies the type of records that the person authorizes to be disclosed. (2) The credit card issuer shall include in the statement to be signed by the requesting person a notice that the person has the right at any time to revoke the authorization. (c) As used in this section, “law enforcement officer” means a peace officer as defined by Section 830.1 of the Penal Code. (Added by Stats. 2001, Ch. 493, Sec. 1. Effective January 1, 2002.)
  8. 1749.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. )

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    Retail sellers that allow layaway must give the consumer a written statement of the layaway terms.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. ) ## 1749. Any retail seller which permits consumers to lay away consumer goods shall provide to any consumer entering into a layaway agreement with the seller a written statement of the terms and conditions of the agreement, including the following information: (1) The amount of the deposit received. (2) The length of time the goods will be held on layaway which may be expressed as a period of time or as a date when final payment for the goods is due. (3) A specific description of the goods. (4) The total purchase price of the goods including a separate listing of any handling or processing charges. (5) Any other terms and conditions of the layaway agreement. (6) That the seller will refund any layaway deposit and subsequent payments, if any, when, before the end of the stated layaway period, the goods have for any reason become no longer available in the same condition as at the time of the sale to the consumer. (Added by Stats. 1975, Ch. 825.)
  9. 1749.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. )

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    This section defines “consumer good,” “retail seller,” and “layaway” for this title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. ) ## 1749.1. For purposes of this title, the following terms have the following meanings: (a) “Consumer good” means any article which is used or bought for use primarily for personal, family, or household purposes. (b) “Retail seller” means an individual, firm, partnership, corporation, joint stock company, association, organization, or other legal entity which engages in the business of selling consumer goods to retail buyers. (c) “Layaway” means an agreement by a retail seller with a consumer to retain specified consumer goods for sale to the consumer at a specified price, in earnest of which sale the consumer has deposited with the retail seller an agreed upon sum of money, and any other terms and conditions not contrary to law which are mutually agreed upon. (Added by Stats. 1975, Ch. 825.)
  10. 1749.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. )

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    A buyer of consumer goods generally cannot waive the provisions of this title, unless the title expressly allows it.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. ) ## 1749.2. Any waiver by the buyer of consumer goods of the provisions of this title, except as expressly provided in this title, shall be deemed contrary to public policy and shall be unenforceable and void. (Added by Stats. 1975, Ch. 825.)
  11. 1749.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. )

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    The remedies in this title are cumulative and do not limit any other available remedy.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. ) ## 1749.3. The remedies provided by this title are cumulative and shall not be construed as restricting any remedy that is otherwise available. (Added by Stats. 1975, Ch. 825.)
  12. 1749.4.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. )

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    This section says the layaway practices title does not reduce or limit other legal obligations under Title 2 or any other applicable law.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4. LAYAWAY PRACTICES [1749 - 1749.4] ( Title 1.4 added by Stats. 1975, Ch. 825. ) ## 1749.4. Nothing in this title shall be construed to limit or reduce any legal obligations imposed under Title 2 (commencing with Section 1801) of Part 4 of Division 3 or under any other applicable law. (Added by Stats. 1975, Ch. 825.)
  13. 1749.45.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4A. GIFT CERTIFICATES [1749.45 - 1749.6] ( Title 1.4A added by Stats. 1996, Ch. 933, Sec. 1. )

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    This section defines “gift certificate” to include gift cards and electronic gift cards, but excludes certain gift cards and preserves an exemption for certain prepaid calling card fees or practices.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4A. GIFT CERTIFICATES [1749.45 - 1749.6] ( Title 1.4A added by Stats. 1996, Ch. 933, Sec. 1. ) ## 1749.45. (a) As used in this title, “gift certificate” includes gift cards and electronic gift cards, but does not include any gift card usable with multiple sellers of goods or services, provided the expiration date, if any, is printed on the card. This exemption does not apply to a gift card usable only with affiliated sellers of goods or services. (b) Nothing in this title prohibits those fees or practices expressly permitted by Section 17538.9 of the Business and Professions Code with respect to a prepaid calling card, as defined in that section, that is issued solely to provide an access number and authorization code for prepaid calling services. (Amended by Stats. 2025, Ch. 207, Sec. 1. (SB 22) Effective January 1, 2026.)
  14. 1749.51.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4A. GIFT CERTIFICATES [1749.45 - 1749.6] ( Title 1.4A added by Stats. 1996, Ch. 933, Sec. 1. )

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    A waiver of any provision of this title is against public policy and has no legal effect.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4A. GIFT CERTIFICATES [1749.45 - 1749.6] ( Title 1.4A added by Stats. 1996, Ch. 933, Sec. 1. ) ## 1749.51. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 6. Effective January 1, 2003.)
  15. 1749.6.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4A. GIFT CERTIFICATES [1749.45 - 1749.6] ( Title 1.4A added by Stats. 1996, Ch. 933, Sec. 1. )

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    Gift certificate value is held in trust for the beneficiary, and an issuer in bankruptcy must keep honoring pre-bankruptcy gift certificates.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4A. GIFT CERTIFICATES [1749.45 - 1749.6] ( Title 1.4A added by Stats. 1996, Ch. 933, Sec. 1. ) ## 1749.6. (a) A gift certificate constitutes value held in trust by the issuer of the gift certificate on behalf of the beneficiary of the gift certificate. The value represented by the gift certificate belongs to the beneficiary, or to the legal representative of the beneficiary to the extent provided by law, and not to the issuer. (b) An issuer of a gift certificate who is in bankruptcy shall continue to honor a gift certificate issued prior to the date of the bankruptcy filing on the grounds that the value of the gift certificate constitutes trust property of the beneficiary. (c) (1) This section does not alter the terms of a gift certificate. The terms of a gift certificate may not make its redemption or other use invalid in the event of a bankruptcy. (2) This section does not require, unless otherwise required by law, the issuer of a gift certificate to: (A) Redeem a gift certificate for cash. (B) Replace a gift certificate that has been lost or stolen. (C) Maintain a separate account for the funds used to purchase the gift certificate. (d) (1) This section does not create an interest in favor of the beneficiary of the gift certificate in any specific property of the issuer. (2) This section does not create a fiduciary or quasi-fiduciary relationship between the beneficiary of the gift certificates and the issuer, unless otherwise provided by law. (3) The issuer of a gift certificate has no obligation to pay interest on the value of the gift certificate held in trust under this section, unless otherwise provided by law. (Added by Stats. 2002, Ch. 997, Sec. 1. Effective January 1, 2003.)
  16. 1749.60.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. )

    Verify source ↗

    This title may be cited as the “Supermarket Club Card Disclosure Act of 1999.”

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. ) ## 1749.60. This title shall be known and may be cited as the “Supermarket Club Card Disclosure Act of 1999.” (Added by Stats. 1999, Ch. 586, Sec. 1. Effective January 1, 2000. Operative July 1, 2000, pursuant to Sec. 2 of Ch. 586.)
  17. 1749.61.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. )

    Verify source ↗

    This section defines terms used in the supermarket club cards title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. ) ## 1749.61. For purposes of this title: (a) “Cardholder” means any consumer to whom a supermarket club card is issued, provided that in cases where more than one supermarket club card has been issued for the same account, all persons holding those supermarket club cards may be treated as a single cardholder. (b) “Supermarket” means any retailer that sells food items. (c) “Supermarket club card” means any card, plate, coupon book, or other single device existing for the purpose of being used from time to time upon presentation for price discounts on retail products offered by the club card issuer. “Supermarket club card” does not include any credit card that is subject to Section 1748.12. (d) “Club card issuer” means a supermarket that provides supermarket club cards to consumers, and includes a supermarket’s contract information services provider. (e) “Marketing information” means the categorization of cardholders compiled by a club card issuer, based on a cardholder’s shopping patterns, spending history, or behavioral characteristics derived from account activity which is provided to any person or entity for consideration. “Marketing information” does not include aggregate data which does not identify a cardholder based on the cardholder’s shopping patterns, spending history, or behavioral characteristics derived from account activity. (Added by Stats. 1999, Ch. 586, Sec. 1. Effective January 1, 2000. Operative July 1, 2000, pursuant to Sec. 2 of Ch. 586.)
  18. 1749.63.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. )

    Verify source ↗

    A violation of this title is treated as unfair competition and is punishable under the referenced Business and Professions Code provisions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. ) ## 1749.63. A violation of this title constitutes “unfair competition” as defined in Section 17200 of the Business and Professions Code and is punishable as prescribed in Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code. (Added by Stats. 1999, Ch. 586, Sec. 1. Effective January 1, 2000. Operative July 1, 2000, pursuant to Sec. 2 of Ch. 586.)
  19. 1749.64.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. )

    Verify source ↗

    A club card issuer must not ask for a driver’s license number or social security account number in a supermarket club card application, or require them as a condition of getting the card.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. ) ## 1749.64. Notwithstanding any other provision of law, no club card issuer shall request in a supermarket club card application, or require as a condition of obtaining a supermarket club card, that an applicant provide a driver’s license number or a social security account number. This section shall not be construed to prohibit a club card issuer from requesting a driver’s license number or a social security account number for a supermarket club card that can also be used as identification for check cashing purposes or to debit the checking or savings account of the cardholder. However, no club card issuer shall, as a condition of obtaining a supermarket club card, require a cardholder to obtain a supermarket club card that can also be used as identification for check cashing purposes or to debit the checking or savings account of the cardholder. (Added by Stats. 1999, Ch. 586, Sec. 1. Effective January 1, 2000. Operative July 1, 2000, pursuant to Sec. 2 of Ch. 586.)
  20. 1749.65.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. )

    Verify source ↗

    A club card issuer generally may not sell or share a cardholder’s personal identification information, but limited sharing is allowed for mailing purposes and for certain marketing information if listed conditions are met.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. ) ## 1749.65. (a) Notwithstanding any other provision of law, no club card issuer may sell or share a cardholder’s name, address, telephone number, or other personal identification information. (b) Nothing in this section is intended to prevent a club card issuer from providing names and addresses of cardholders to a third party for purposes of mailing supermarket club card information to cardholders on behalf of the club card issuer. However, that third party shall not use the information for any other purpose. (c) Notwithstanding subdivision (a), this section does not prohibit a club card issuer from sharing marketing information that includes cardholder names and addresses if the club card issuer complies with all of the following: (1) The club card issuer charges an annual fee for its supermarket club card. (2) The club card issuer requires cardholders to renew supermarket club cards annually and to pay an annual renewal fee. (3) The club card issuer allows only cardholders, and not members of the public, to make purchases in the supermarket. (4) The club card issuer provides a privacy statement to the cardholder in the supermarket club card application and in the club card issuer’s annual renewal material notifying cardholders that outside companies will be receiving marketing information including names and addresses of cardholders, and the cardholder has agreed to allow the club card issuer to share this information. (5) Prior to selling or transferring names and addresses of cardholders to an outside company, the club card issuer has obtained a written confidentiality agreement from the outside company that the outside company will not sell or share the information with any other entity. (Added by Stats. 1999, Ch. 586, Sec. 1. Effective January 1, 2000. Operative July 1, 2000, pursuant to Sec. 2 of Ch. 586.)
  21. 1749.66.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. )

    Verify source ↗

    A waiver of this title’s provisions is against public policy and is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4B. SUPERMARKET CLUB CARDS [1749.60 - 1749.66] ( Title 1.4B added by Stats. 1999, Ch. 586, Sec. 1. ) ## 1749.66. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 7. Effective January 1, 2003.)
  22. 1749.7.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4C. Clarity of Marketplace Terms and Conditions and Dispute Resolution Minimum Fairness [1749.7- 1749.7.] ( Title 1.4C added by Stats. 2019, Ch. 635, Sec. 1. )

    Verify source ↗

    Marketplaces must make their terms clear, easy to find online, and detailed enough to explain fund holds, seller suspensions/terminations, paid ranking, and appeal rights.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4C. Clarity of Marketplace Terms and Conditions and Dispute Resolution Minimum Fairness [1749.7- 1749.7.] ( Title 1.4C added by Stats. 2019, Ch. 635, Sec. 1. ) ## 1749.7. (a) Every marketplace shall ensure that their terms and conditions regarding commercial relationships with marketplace sellers meet all of the following requirements: (1) Are drafted in plain and intelligible language. (2) Are easily available online for marketplace sellers at all stages of their commercial relationship with the marketplace, including, but not limited to, during the stage prior to the formation of a contract. (3) Set out the grounds for decisions to retain, or refuse to disburse, funds in its possession belonging to a marketplace seller pending investigation or resolution of a dispute between the marketplace and the marketplace seller and the grounds for suspending or terminating a marketplace seller from participating in the marketplace. (b) If a marketplace permits a marketplace seller to pay the marketplace to influence search results through ranking or preferential placement within the marketplace of tangible personal property or services sold by marketplace sellers through the marketplace, the marketplace, in its terms and conditions or policies, shall describe those possibilities and the effects of such payment on the ranking or preferential placement, and either (1) the price of that ranking or preferential placement or (2) how a marketplace seller may obtain written price information for such ranking or preferential placement. (c) If a marketplace decides to suspend or terminate a marketplace seller based upon an alleged violation of law or a term, condition, or policy of the marketplace, the marketplace shall provide the marketplace seller, without undue delay, with a written statement of reasons for that decision. The written statement of reasons shall, at a minimum, do all of the following: (1) Without disclosing information that would result in the disclosure of any proprietary, confidential, or trade secret information, or disclosing information that would hinder any investigation or prevention of deceptive, fraudulent, or illegal activity, describe the facts and circumstances that led to the decision unless the marketplace reasonably believes that giving a written statement of reasons could negatively impact the safety or property of another user or the marketplace itself. (2) Identify the term, condition, or policy that serves as the basis for the suspension or termination. (3) Explain whether or not the decision may be appealed, and, if so, the procedure for such an appeal. (d) For purposes of this section, the following definitions shall apply: (1) “Marketplace” means a physical or electronic place, including, but not limited to, a store, booth, internet website, catalog, television or radio broadcast, or a dedicated sales software application, that sells or offers for retail sale services or tangible personal property for delivery in this state and has an agreement with a marketplace seller to make retail sales of services or tangible personal property through that marketplace, regardless of whether the tangible personal property or the marketplace has a physical presence in the state. (2) “Marketplace seller” means a person residing in the state who has an agreement with a marketplace and makes retail sales of services or tangible personal property through a marketplace owned, operated, or controlled by that marketplace. (3) “Ranking” means the relative prominence given to the tangible personal property or services offered to consumers through a marketplace, as organized or communicated to those consumers by the marketplace, irrespective of the technological means used for that organization or communication. (Added by Stats. 2019, Ch. 635, Sec. 1. (AB 1790) Effective January 1, 2020.)
  23. 1749.8.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. )

    Verify source ↗

    This section defines several terms used in the Online Marketplaces title, including consumer product, high-volume third-party seller, online marketplace, third-party seller, and verify.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. ) ## 1749.8. For purposes of this title: (a) “Consumer product” means tangible personal property that is distributed in commerce and normally used for personal, family, or household purposes, including property intended to be attached to or installed in real property regardless of whether it is actually attached or installed. (b) “High-volume third-party seller” means a third-party seller on an online marketplace who, in any continuous 12-month period during the previous 24 months, has entered into 200 or more discrete transactions utilizing the online marketplace for the sale of new or unused consumer products to buyers located in California resulting in the accumulation of an aggregate total of five thousand dollars ($5,000) or more in gross revenues. (c) “Online marketplace” means a consumer-directed, electronically accessed platform that includes features that allow for, facilitate, or enable a third-party seller to engage in the sale, purchase, payment, storage, shipment, or delivery of a consumer product in this state. (d) “Third-party seller” means a person or entity, independent of an online marketplace, who sells, offers to sell, or contracts with an online marketplace to sell a consumer product in the state by utilizing an online marketplace. (e) “Verify” means to confirm that information provided to an online marketplace pursuant to this title is accurate. Methods of confirmation include the use of one or more methods that enable the online marketplace to reliably determine that the information and documents are valid, correspond to the seller or an individual acting on the seller’s behalf, are not misappropriated, and are not falsified. (f) This section shall become operative on July 1, 2025. (Repealed (in Sec. 2) and added by Stats. 2024, Ch. 172, Sec. 3. (SB 1144) Effective January 1, 2025. Operative July 1, 2025, by its own provisions.)
  24. 1749.8.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. )

    Verify source ↗

    Online marketplaces must collect, verify, and periodically notify high-volume third-party sellers about required seller information, and may suspend future sales if the seller does not comply.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. ) ## 1749.8.1. (a) An online marketplace shall require each high-volume third-party seller on the online marketplace to provide, not later than 10 days after qualifying as a high-volume third-party seller, all of the following information to the online marketplace: (1) (A) A bank account number, or, if the high-volume third-party seller does not have a bank account, the name of the payee for payments issued by the online marketplace to the seller. (B) The high-volume third-party seller shall provide the information required by this paragraph to one of the following as specified by the online marketplace: (i) The online marketplace. (ii) A payment processor or other third party designated by the online marketplace that is required, pursuant to a contract with the online marketplace, to maintain the information in a confidential manner and disclose the information only in response to a court order or to the online marketplace upon its request. (2) If the high-volume third-party seller is an individual, the individual’s name. (3) If the high-volume third-party seller is not an individual, one of the following: (A) A copy of a valid government-issued identification for an individual who has the legal authority to act on behalf of the high-volume third-party seller that includes the individual’s name. (B) A copy of a valid government record or tax document dated within the past 24 months that includes the business name and physical address of the high-volume third-party seller. (4) A business tax identification number, or, if the high-volume third-party seller does not have a business tax identification number, a taxpayer identification number. (5) A valid email address and telephone number for the high-volume third-party seller. (b) An online marketplace shall verify the information provided pursuant to subdivision (a) within 10 days and shall verify within 10 days any changes to the information that is provided to the marketplace by a high-volume third-party seller. If a high-volume third-party seller provides a copy of a valid government-issued tax document, information contained within the tax document shall be presumed to be verified as of the date of issuance of the record or document. (c) (1) The online marketplace shall, on at least an annual basis, notify each high-volume third-party seller operating on the online marketplace of the requirement to inform the online marketplace of any changes to the information provided by the seller pursuant to subdivision (a) within 10 days of receiving the notification and shall instruct each high-volume third-party seller, as part of the notification, to electronically certify that the information is accurate and that either that the seller’s information is unchanged or that the seller is providing updated information. (2) If a high-volume third-party seller does not provide the information or certification required under this section, the online marketplace shall, after providing the seller with written or electronic notice and opportunity to provide the information or certification not later than 10 days after the issuance of the notice, suspend any future sales activity of the seller until the seller provides the information or certification. (Amended by Stats. 2023, Ch. 131, Sec. 11. (AB 1754) Effective January 1, 2024.)
  25. 1749.8.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. )

    Verify source ↗

    Online marketplaces must collect and disclose specified information about qualifying high-volume third-party sellers, provide a reporting mechanism for suspicious activity, and suspend noncompliant sellers in certain cases.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. ) ## 1749.8.2. (a) An online marketplace shall require a high-volume third-party seller with at least twenty thousand dollars ($20,000) of gross annual revenues from transactions with buyers in California through the online marketplace in either of the two prior calendar years to provide, in addition to the information required by 1749.8.1, the following information to the online marketplace and to disclose the information about the high-volume third-party seller to consumers in a clear and conspicuous manner in the order confirmation message, or other communication made to a consumer after a purchase is finalized, and in the consumer’s account transaction history: (1) (A) Except as provided in subparagraph (B), the high-volume third-party seller shall provide all of the following identifying information: (i) The full name of the high-volume third-party seller, which may include the seller’s name or company name, or the name by which the seller or company operates on the online marketplace. (ii) The high-volume third-party seller’s physical address. (iii) Contact information for the high-volume third-party seller, including a current working telephone number, email address, or any other means of direct electronic messaging, to allow users of the online marketplace to have direct and unhindered communication with the seller. (B) A high-volume third-party seller may request that the online marketplace accept the following partial disclosures of information in lieu of the disclosures required pursuant to subparagraph (A): (i) If the high-volume third-party seller certifies to the online marketplace that they do not have a physical address other than a residential physical address, or a combined business and residential physical address, the online marketplace may disclose only the country and state, if applicable, in which the seller resides and inform consumers that inquiries should be submitted to the seller by telephone, email, or electronic means provided by the online marketplace. (ii) If the high-volume third-party seller certifies to the online marketplace that they do not have a telephone number other than a personal telephone number, the online marketplace shall inform consumers that no telephone number is available for the seller, and inquiries should be submitted to the seller’s email address or electronic means provided by the online marketplace. (2) (A) Whether or not another party is responsible for supplying the product to the consumer upon purchase. (B) If requested by an authenticated purchaser, the contact information described in paragraph (1) for the party who is responsible for supplying the product to the consumer upon purchase. (b) An online marketplace shall disclose to consumers, in a clear and conspicuous manner on the product listing of a high-volume third-party seller, a reporting mechanism that allows for electronic and telephonic reporting of suspicious activity by the high-volume third-party seller to the online marketplace. (c) (1) (A) An online marketplace shall suspend future sales activity of a high-volume third-party seller that meets any of the following criteria: (i) The high-volume third-party seller is not in compliance with the requirements of this section. (ii) The high-volume third-party seller made a false representation to the online marketplace about the applicability of subparagraph (B) of paragraph (1) of subdivision (a). (iii) The high-volume third-party seller made a false representation to consumers. (B) An online marketplace may suspend future sales activity of a high-volume third-party seller that has not answered consumer inquiries within a reasonable timeframe. (2) (A) An online marketplace shall provide notice of an impending suspension pursuant to clause (i) of subparagraph (A) of paragraph (1) and shall not suspend the high-volume third-party seller if the seller becomes in compliance with this section within 10 days of the date on which the notice was issued. (B) If the high-volume third-party seller provides the information required by subdivision (a) more than 10 days after the date of the notice, the online marketplace shall restore the ability of the seller to have transactions facilitated by or through the online marketplace within 10 days of receiving all of the information. (Added by Stats. 2022, Ch. 857, Sec. 1. (SB 301) Effective January 1, 2023. Operative July 1, 2023, pursuant to Sec. 1749.8.5.)
  26. 1749.8.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. )

    Verify source ↗

    Online marketplaces must keep required information for at least two years, use it only for the title’s required purposes unless law requires otherwise, and maintain reasonable security safeguards. High-volume third-party sellers may redact unnecessary information from certain compliance documents.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. ) ## 1749.8.3. (a) (1) An online marketplace shall keep the information provided to comply with the requirements of this title for no less than two years. (2) Information provided solely to comply with the requirements of this title shall not be used for any other purpose unless required by law. (3) An online marketplace shall implement and maintain reasonable security procedures and practices, including administrative, physical, and technical safeguards, appropriate to the nature of the information and the purposes for which the information will be used, to protect the information provided to comply with the requirements of this title from unauthorized use, disclosure, access, destruction, and modification. (b) A high-volume third-party seller may redact from a document provided solely to comply with a requirement of this title any information that is not necessary for either of the following: (1) To comply with a requirement of this title. (2) To verify the authenticity of the document as a copy of a valid government-issued identification, government record, or tax document, as applicable. (Added by Stats. 2022, Ch. 857, Sec. 1. (SB 301) Effective January 1, 2023. Operative July 1, 2023, pursuant to Sec. 1749.8.5.)
  27. 1749.8.4.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. )

    Verify source ↗

    Violators of this title may owe up to $10,000 per violation, enforced by specified California public attorneys in a civil action.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. ) ## 1749.8.4. (a) A person or entity who violates any provision of this title shall be liable for a civil penalty not to exceed ten thousand dollars ($10,000) for each violation, which may be assessed and recovered only in a civil action brought in the name of the people of the State of California by the Attorney General, a district attorney in any county, a city attorney in any city or city and county, or a county counsel in any county. (b) In addition to the civil penalty provided by subdivision (a), the Attorney General, a district attorney, a city attorney in any city or city and county, or county counsel who prevails in an action to enforce this title shall be entitled to the following relief: (1) Reasonable attorney’s fees and costs, including expert witness fees and other litigation expenses. (2) Preventive relief, including a permanent or temporary injunction, restraining order, or other order against any person responsible for the conduct. (c) This section shall become operative on July 1, 2025. (Repealed (in Sec. 4) and added by Stats. 2024, Ch. 172, Sec. 5. (SB 1144) Effective January 1, 2025. Operative July 1, 2025, by its own provisions.)
  28. 1749.8.5.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. )

    Verify source ↗

    This title does not affect an entity’s liability for damages caused by a consumer product sold online, and it became operative on July 1, 2023.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. ) ## 1749.8.5. (a) This title does not apply to or affect the liability of an entity, including an entity that meets the definition of a high-volume third-party seller under this title, for damages caused by a consumer product that is sold online. (b) This title shall become operative July 1, 2023. (Added by Stats. 2022, Ch. 857, Sec. 1. (SB 301) Effective January 1, 2023.)
  29. 1749.8.9.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. )

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    Online marketplaces must alert California law enforcement about suspected stolen-goods sales, maintain anti-stolen-goods policies and reporting/communication mechanisms, and make those policies and mechanisms public.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.4D. Online Marketplaces [1749.8 - 1749.8.9] ( Title 1.4D added by Stats. 2022, Ch. 857, Sec. 1. ) ## 1749.8.9. (a) An online marketplace shall alert local, regional, or state law enforcement agencies in California if it knows or should know that a third-party seller is selling or attempting to sell stolen goods to a California resident, unless the online marketplace has received a notice from the law enforcement agency that the same third-party seller is suspected of selling or attempting to sell the same stolen goods on the online marketplace to a California resident. (b) (1) An online marketplace shall do all of the following: (A) Establish and maintain a policy prohibiting the sale of stolen goods on the online marketplace, which shall include consequences for knowingly selling stolen goods on the online marketplace, including, but not limited to, suspension or termination of the seller’s account. (B) Provide a mechanism on the online marketplace that allows any individual to notify the online marketplace that a seller is or may be selling stolen goods. (C) Provide a mechanism on the online marketplace that allows the online marketplace and law enforcement to communicate in a timely and confidential manner, including by means of a link to a dedicated web page, online portal, or point of contact and ensure timely replies to law enforcement requests, including warrants, subpoenas, and other legal processes. (D) Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent and detect organized retail crime. (2) The policy and mechanism required by this subdivision shall be publicly posted and readily accessible to users. (c) This section shall become operative on July 1, 2025. (Added by Stats. 2024, Ch. 172, Sec. 6. (SB 1144) Effective January 1, 2025. Operative July 1, 2025, by its own provisions.)
  30. 1750.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. )

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    This title may be cited as the Consumers Legal Remedies Act.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. ) ## 1750. This title may be cited as the Consumers Legal Remedies Act. (Added by Stats. 1970, Ch. 1550.)
  31. 1751.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. )

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    A consumer cannot waive the provisions of this title; any such waiver is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. ) ## 1751. Any waiver by a consumer of the provisions of this title is contrary to public policy and shall be unenforceable and void. (Added by Stats. 1970, Ch. 1550.)
  32. 1752.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. )

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    This section says the title’s remedies are not exclusive and do not restrict other legal remedies or class-action rights.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. ) ## 1752. The provisions of this title are not exclusive. The remedies provided herein for violation of any section of this title or for conduct proscribed by any section of this title shall be in addition to any other procedures or remedies for any violation or conduct provided for in any other law. Nothing in this title shall limit any other statutory or any common law rights of the Attorney General or any other person to bring class actions. Class actions by consumers brought under the specific provisions of Chapter 3 (commencing with Section 1770) of this title shall be governed exclusively by the provisions of Chapter 4 (commencing with Section 1780); however, this shall not be construed so as to deprive a consumer of any statutory or common law right to bring a class action without resort to this title. If any act or practice proscribed under this title also constitutes a cause of action in common law or a violation of another statute, the consumer may assert such common law or statutory cause of action under the procedures and with the remedies provided for in such law. (Amended by Stats. 1975, Ch. 615.)
  33. 1753.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. )

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    If part of this title is held unconstitutional, the rest of the title still remains in effect.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. ) ## 1753. If any provision of this title or the application thereof to any person or circumstance is held to be unconstitutional, the remainder of the title and the application of such provision to other persons or circumstances shall not be affected thereby. (Added by Stats. 1970, Ch. 1550.)
  34. 1754.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. )

    Verify source ↗

    This title does not apply to certain construction and real property sale transactions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. ) ## 1754. The provisions of this title shall not apply to any transaction which provides for the construction, sale, or construction and sale of an entire residence or all or part of a structure designed for commercial or industrial occupancy, with or without a parcel of real property or an interest therein, or for the sale of a lot or parcel of real property, including any site preparation incidental to such sale. (Added by Stats. 1970, Ch. 1550.)
  35. 1755.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. )

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    This section excludes owners and employees of advertising media from this title unless they knew about the deceptive practices involved.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. ) ## 1755. Nothing in this title shall apply to the owners or employees of any advertising medium, including, but not limited to, newspapers, magazines, broadcast stations, billboards and transit ads, by whom any advertisement in violation of this title is published or disseminated, unless it is established that such owners or employees had knowledge of the deceptive methods, acts or practices declared to be unlawful by Section 1770. (Added by Stats. 1970, Ch. 1550.)
  36. 1756.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. )

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    The title applies only to actions filed on or after January 1, 1971.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 1. General Provisions [1750 - 1756] ( Chapter 1 added by Stats. 1970, Ch. 1550. ) ## 1756. The substantive and procedural provisions of this title shall only apply to actions filed on or after January 1, 1971. (Added by Stats. 1970, Ch. 1550.)
  37. 1760.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 2. Construction and Definitions [1760 - 1761] ( Chapter 2 added by Stats. 1970, Ch. 1550. )

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    This title must be interpreted and applied broadly to protect consumers from unfair and deceptive business practices and to support efficient, economical protection procedures.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 2. Construction and Definitions [1760 - 1761] ( Chapter 2 added by Stats. 1970, Ch. 1550. ) ## 1760. This title shall be liberally construed and applied to promote its underlying purposes, which are to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure such protection. (Added by Stats. 1970, Ch. 1550.)
  38. 1761.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 2. Construction and Definitions [1760 - 1761] ( Chapter 2 added by Stats. 1970, Ch. 1550. )

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    This section defines key terms used in the Consumers Legal Remedies Act title, including goods, services, person, consumer, transaction, senior citizen, disabled person, physical or mental impairment, major life activities, and home solicitation.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 2. Construction and Definitions [1760 - 1761] ( Chapter 2 added by Stats. 1970, Ch. 1550. ) ## 1761. As used in this title: (a) “Goods” means tangible chattels bought or leased for use primarily for personal, family, or household purposes, including certificates or coupons exchangeable for these goods, and including goods that, at the time of the sale or subsequently, are to be so affixed to real property as to become a part of real property, whether or not they are severable from the real property. (b) “Services” means work, labor, and services for other than a commercial or business use, including services furnished in connection with the sale or repair of goods. (c) “Person” means an individual, partnership, corporation, limited liability company, association, or other group, however organized. (d) “Consumer” means an individual who seeks or acquires, by purchase or lease, any goods or services for personal, family, or household purposes. (e) “Transaction” means an agreement between a consumer and another person, whether or not the agreement is a contract enforceable by action, and includes the making of, and the performance pursuant to, that agreement. (f) “Senior citizen” means a person who is 65 years of age or older. (g) “Disabled person” means a person who has a physical or mental impairment that substantially limits one or more major life activities. (1) As used in this subdivision, “physical or mental impairment” means any of the following: (A) A physiological disorder or condition, cosmetic disfigurement, or anatomical loss substantially affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genitourinary; hemic and lymphatic; skin; or endocrine. (B) A mental or psychological disorder, including intellectual disability, organic brain syndrome, emotional or mental illness, and specific learning disabilities. “Physical or mental impairment” includes, but is not limited to, diseases and conditions that include orthopedic, visual, speech, and hearing impairment, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, intellectual disability, and emotional illness. (2) “Major life activities” means functions that include caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working. (h) “Home solicitation” means a transaction made at the consumer’s primary residence, except those transactions initiated by the consumer. A consumer response to an advertisement is not a home solicitation. (Amended by Stats. 2012, Ch. 457, Sec. 4. (SB 1381) Effective January 1, 2013.)
  39. 1770.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 3. Deceptive Practices [1770- 1770.] ( Chapter 3 added by Stats. 1970, Ch. 1550. )

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    This section bans a long list of deceptive or unfair sales practices in consumer goods and services transactions, and separately prohibits certain mortgage-broker conduct and fee-disclosure failures.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 3. Deceptive Practices [1770- 1770.] ( Chapter 3 added by Stats. 1970, Ch. 1550. ) ## 1770. (a) The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful: (1) Passing off goods or services as those of another. (2) Misrepresenting the source, sponsorship, approval, or certification of goods or services. (3) Misrepresenting the affiliation, connection, or association with, or certification by, another. (4) Using deceptive representations or designations of geographic origin in connection with goods or services. (5) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have. (6) Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand. (7) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another. (8) Disparaging the goods, services, or business of another by false or misleading representation of fact. (9) Advertising goods or services with intent not to sell them as advertised. (10) Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity. (11) Advertising furniture without clearly indicating that it is unassembled if that is the case. (12) Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller. (13) Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions. (14) Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law. (15) Representing that a part, replacement, or repair service is needed when it is not. (16) Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not. (17) Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction. (18) Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer. (19) Inserting an unconscionable provision in the contract. (20) Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the seller’s costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement. (21) Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7. (22) (A) Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message. (B) This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient. (23) (A) The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following: (i) Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code. (ii) Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations. (iii) Section 22684, 22685, 22686, or 22687 of the Financial Code. (iv) Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code. (B) A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision. (24) (A) Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services. (B) For purposes of this paragraph: (i) “Public social services” means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them. (ii) “Public social services” also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits. (iii) “Unreasonable fee” means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following: (I) The time and effort required. (II) The novelty and difficulty of the services. (III) The skill required to perform the services. (IV) The nature and length of the professional relationship. (V) The experience, reputation, and ability of the person providing the services. (C) This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons. (25) (A) Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans’ benefits or entitlements that does not include the following statement in the same type size and font as the term “veteran” or any variation of that term: (i) “I am not authorized to file an initial application for Veterans’ Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans’ Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf.” The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans’ Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event. (ii) The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans’ benefits or entitlements. (B) Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans’ benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries that does not include the following statement, in the same type size and font as the term “veteran” or the variation of that term: “This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries. None of the insurance products promoted at this sales event are endorsed by those organizations, all of which offer free advice to veterans about how to qualify and apply for benefits.” (i) The statement in this subparagraph shall be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans’ benefits or entitlements. (ii) The requirements of this subparagraph shall not apply in a case where the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or other congressionally chartered or recognized organization of honorably discharged members of the Armed Forces of the United States, or any of their auxiliaries have granted written permission to the advertiser or promoter for the use of its name, symbol, or insignia to advertise or promote the event, presentation, seminar, workshop, or other public gathering. (26) Advertising, offering for sale, or selling a financial product that is illegal under state or federal law, including any cash payment for the assignment to a third party of the consumer’s right to receive future pension or veteran’s benefits. (27) Representing that a product is made in California by using a Made in California label created pursuant to Section 12098.10 of the Government Code, unless the product complies with Section 12098.10 of the Government Code. (28) (A) Failing to include either of the following in a solicitation by a covered person, or an entity acting on behalf of a covered person, to a consumer for a consumer financial product or service: (i) The name of the covered person, and, if applicable, the entity acting on behalf of the covered person, and relevant contact information, including a mailing address and telephone number. (ii) (I) The following disclosure statement in at least 18-point bold type and in the language in which a solicitation described by this paragraph is drafted: “THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.” (II) (ia) The disclosure statement described in subclause (I) shall appear in at least 16-point bold type on the front of an envelope that contains a solicitation described by this paragraph. (ib) This subclause applies only to solicitations made by physical mail. (B) For purposes of this paragraph: (i) “Consumer financial product or service” has the same meaning as defined in Section 90005 of the Financial Code. (ii) (I) “Covered person” has the same meaning as defined in Section 90005 of the Financial Code. (II) “Covered person” does not mean an entity exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code. (iii) “Solicitation” means an advertisement or marketing communication through writing or graphics that is directed to, or likely to give the impression of being directed to, an individually identified person, residence, or business location. “Solicitation” does not include any of the following: (I) Communication through a mass advertisement, including in a catalog, on a radio or television broadcast, or on a publicly accessible internet website, if that communication is not directed to, or is not likely to give the impression of being directed to, an individually identified person, residence, or business location. (II) Communication via a telephone, mail, or electronic communication that was initiated by a consumer. (III) A written credit or insurance solicitation that is subject to the disclosure requirements of subsection (d) of Section 1681m of Title 15 of the United States Code. (29) (A) Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following: (i) Taxes or fees imposed by a government on the transaction. (ii) Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer. (B) Compliance by a person providing broadband internet access service on its own or as part of a bundle, as defined in Section 8.1(b) of Title 47 of the Code of Federal Regulations, with the broadband consumer label requirements adopted by the Federal Communications Commission in FCC 22-86 on November 14, 2022, codified in Section 8.1(a) of Title 47 of the Code of Federal Regulations, shall be deemed compliance with this paragraph. (C) (i) For purposes of this subparagraph, “financial entity” means an entity that is exempt from Division 24 (commencing with Section 90000) of the Financial Code pursuant to Section 90002 of the Financial Code. (ii) A financial entity that is required to provide disclosures in compliance with any of the following federal or state acts or regulations with respect to a financial transaction is exempt from this paragraph for purposes of that financial transaction: (I) The federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.). (II) The federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.). (III) Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.). (IV) The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.). (V) The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.). (VI) The federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639). (VII) Any regulation adopted pursuant to any of the federal acts in subclauses (I) to (VI), inclusive. (VIII) The California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code). (IX) The California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code). (X) The Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code). (XI) Any regulation adopted pursuant to any of the state acts in subclauses (VIII) to (X), inclusive. (D) (i) Subject to clause (ii), this paragraph does not apply to a mandatory fee or charge for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service. (ii) A mandatory fee or charge under clause (i) shall be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item. (iii) “Grocery delivery service” means a company owned by, or under contract with, a grocery store or distributor that delivers food, primarily fresh produce, meat, poultry, fish, deli products, dairy products, perishable beverages, baked foods, and prepared foods, from the grocery store or distributor to a consumer. (iv) The exemption in this subparagraph does not apply to a “third-party food delivery platform,” as defined in Section 113930.5 of the Health and Safety Code, or any other food delivery platform. (b) (1) It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and that is used to finance a home improvement contract or any portion of a home improvement contract. For purposes of this subdivision, “mortgage broker or lender” includes a finance lender licensed pursuant to the California Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code). (2) This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing of a home improvement transaction. (c) As of July 1, 2025, any disclosure, advertisement, or notice that is required to be “clearly” or “clearly and conspicuously” made must have text that is “clear and conspicuous,” as defined in subdivision (u) of Section 1791. (d) This section shall become operative on July 1, 2024. (Amended by Stats. 2025, Ch. 67, Sec. 24. (AB 1170) Effective January 1, 2026.)
  40. 1780.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. )

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    Consumers who are harmed by an unlawful practice may sue, and the court can award several remedies and fees.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. ) ## 1780. (a) Any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 may bring an action against that person to recover or obtain any of the following: (1) Actual damages, but in no case shall the total award of damages in a class action be less than one thousand dollars ($1,000). (2) An order enjoining the methods, acts, or practices. (3) Restitution of property. (4) Punitive damages. (5) Any other relief that the court deems proper. (b) (1) Any consumer who is a senior citizen or a disabled person, as defined in subdivisions (f) and (g) of Section 1761, as part of an action under subdivision (a), may seek and be awarded, in addition to the remedies specified therein, up to five thousand dollars ($5,000) where the trier of fact does all of the following: (A) Finds that the consumer has suffered substantial physical, emotional, or economic damage resulting from the defendant’s conduct. (B) Makes an affirmative finding in regard to one or more of the factors set forth in subdivision (b) of Section 3345. (C) Finds that an additional award is appropriate. (2) Judgment in a class action by senior citizens or disabled persons under Section 1781 may award each class member that additional award if the trier of fact has made the foregoing findings. (c) Whenever it is proven by a preponderance of the evidence that a defendant has engaged in conduct in violation of paragraph (24) of subdivision (a) of Section 1770, in addition to all other remedies otherwise provided in this section, the court shall award treble actual damages to the plaintiff. This subdivision shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons. (d) An action under subdivision (a) or (b) may be commenced in the county in which the person against whom it is brought resides, has his or her principal place of business, or is doing business, or in the county where the transaction or any substantial portion thereof occurred. In any action subject to this section, concurrently with the filing of the complaint, the plaintiff shall file an affidavit stating facts showing that the action has been commenced in a county described in this section as a proper place for the trial of the action. If a plaintiff fails to file the affidavit required by this section, the court shall, upon its own motion or upon motion of any party, dismiss the action without prejudice. (e) The court shall award court costs and attorney’s fees to a prevailing plaintiff in litigation filed pursuant to this section. Reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith. (Amended by Stats. 2009, Ch. 140, Sec. 27. (AB 1164) Effective January 1, 2010.)
  41. 1781.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. )

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    This section lets an eligible consumer bring a class action for similarly harmed consumers and sets court procedures for class certification, notice, hearings, and settlement approval.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. ) ## 1781. (a) Any consumer entitled to bring an action under Section 1780 may, if the unlawful method, act, or practice has caused damage to other consumers similarly situated, bring an action on behalf of himself and such other consumers to recover damages or obtain other relief as provided for in Section 1780. (b) The court shall permit the suit to be maintained on behalf of all members of the represented class if all of the following conditions exist: (1) It is impracticable to bring all members of the class before the court. (2) The questions of law or fact common to the class are substantially similar and predominate over the questions affecting the individual members. (3) The claims or defenses of the representative plaintiffs are typical of the claims or defenses of the class. (4) The representative plaintiffs will fairly and adequately protect the interests of the class. (c) If notice of the time and place of the hearing is served upon the other parties at least 10 days prior thereto, the court shall hold a hearing, upon motion of any party to the action which is supported by affidavit of any person or persons having knowledge of the facts, to determine if any of the following apply to the action: (1) A class action pursuant to subdivision (b) is proper. (2) Published notice pursuant to subdivision (d) is necessary to adjudicate the claims of the class. (3) The action is without merit or there is no defense to the action. A motion based upon Section 437c of the Code of Civil Procedure shall not be granted in any action commenced as a class action pursuant to subdivision (a). (d) If the action is permitted as a class action, the court may direct either party to notify each member of the class of the action. The party required to serve notice may, with the consent of the court, if personal notification is unreasonably expensive or it appears that all members of the class cannot be notified personally, give notice as prescribed herein by publication in accordance with Section 6064 of the Government Code in a newspaper of general circulation in the county in which the transaction occurred. (e) The notice required by subdivision (d) shall include the following: (1) The court will exclude the member notified from the class if he so requests by a specified date. (2) The judgment, whether favorable or not, will include all members who do not request exclusion. (3) Any member who does not request exclusion, may, if he desires, enter an appearance through counsel. (f) A class action shall not be dismissed, settled, or compromised without the approval of the court, and notice of the proposed dismissal, settlement, or compromise shall be given in such manner as the court directs to each member who was given notice pursuant to subdivision (d) and did not request exclusion. (g) The judgment in a class action shall describe those to whom the notice was directed and who have not requested exclusion and those the court finds to be members of the class. The best possible notice of the judgment shall be given in such manner as the court directs to each member who was personally served with notice pursuant to subdivision (d) and did not request exclusion. (Added by Stats. 1970, Ch. 1550.)
  42. 1782.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. )

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    Consumers generally must send written notice and demand correction at least 30 days before filing a damages action under this title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. ) ## 1782. (a) Thirty days or more prior to the commencement of an action for damages pursuant to this title, the consumer shall do the following: (1) Notify the person alleged to have employed or committed methods, acts, or practices declared unlawful by Section 1770 of the particular alleged violations of Section 1770. (2) Demand that the person correct, repair, replace, or otherwise rectify the goods or services alleged to be in violation of Section 1770. The notice shall be in writing and shall be sent by certified or registered mail, return receipt requested, to the place where the transaction occurred or to the person’s principal place of business within California. (b) Except as provided in subdivision (c), no action for damages may be maintained under Section 1780 if an appropriate correction, repair, replacement, or other remedy is given, or agreed to be given within a reasonable time, to the consumer within 30 days after receipt of the notice. (c) No action for damages may be maintained under Section 1781 upon a showing by a person alleged to have employed or committed methods, acts, or practices declared unlawful by Section 1770 that all of the following exist: (1) All consumers similarly situated have been identified, or a reasonable effort to identify such other consumers has been made. (2) All consumers so identified have been notified that upon their request the person shall make the appropriate correction, repair, replacement, or other remedy of the goods and services. (3) The correction, repair, replacement, or other remedy requested by the consumers has been, or, in a reasonable time, shall be, given. (4) The person has ceased from engaging, or if immediate cessation is impossible or unreasonably expensive under the circumstances, the person will, within a reasonable time, cease to engage, in the methods, act, or practices. (d) An action for injunctive relief brought under the specific provisions of Section 1770 may be commenced without compliance with subdivision (a). Not less than 30 days after the commencement of an action for injunctive relief, and after compliance with subdivision (a), the consumer may amend his or her complaint without leave of court to include a request for damages. The appropriate provisions of subdivision (b) or (c) shall be applicable if the complaint for injunctive relief is amended to request damages. (e) Attempts to comply with this section by a person receiving a demand shall be construed to be an offer to compromise and shall be inadmissible as evidence pursuant to Section 1152 of the Evidence Code. Furthermore, these attempts to comply with a demand shall not be considered an admission of engaging in an act or practice declared unlawful by Section 1770. Evidence of compliance or attempts to comply with this section may be introduced by a defendant for the purpose of establishing good faith or to show compliance with this section. (Amended by Stats. 1999, Ch. 1000, Sec. 10. Effective January 1, 2000.)
  43. 1783.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. )

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    A Section 1770 action must be filed within 3 years of the challenged method, act, or practice.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. ) ## 1783. Any action brought under the specific provisions of Section 1770 shall be commenced not more than three years from the date of the commission of such method, act, or practice. (Added by Stats. 1970, Ch. 1550.)
  44. 1784.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. )

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    Damages cannot be awarded for a Section 1770-based action if the alleged actor proves the violation was unintentional and a bona fide error despite reasonable procedures, and also makes the required correction or replacement remedy.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5. CONSUMERS LEGAL REMEDIES ACT [1750 - 1784] ( Title 1.5 added by Stats. 1970, Ch. 1550. ) ## CHAPTER 4. Remedies and Procedures [1780 - 1784] ( Chapter 4 added by Stats. 1970, Ch. 1550. ) ## 1784. No award of damages may be given in any action based on a method, act, or practice declared to be unlawful by Section 1770 if the person alleged to have employed or committed such method, act, or practice (a) proves that such violation was not intentional and resulted from a bona fide error notwithstanding the use of reasonable procedures adopted to avoid any such error and (b) makes an appropriate correction, repair or replacement or other remedy of the goods and services according to the provisions of subdivisions (b) and (c) of Section 1782. (Added by Stats. 1970, Ch. 1550.)
  45. 1784.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5A. Vehicle History Reports [1784.1- 1784.1.] ( Title 1.5A added by Stats. 2022, Ch. 863, Sec. 1. )

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    Vehicle history report providers must disclose contact information, confirm California resident inquiries within 3 days, and try to complete inquiries within 14 days, with delayed cases requiring notice and weekly updates.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5A. Vehicle History Reports [1784.1- 1784.1.] ( Title 1.5A added by Stats. 2022, Ch. 863, Sec. 1. ) ## 1784.1. (a) For purposes of this section, the following definitions apply: (1) “Affiliate” means any person or persons controlling, controlled by, or under common control with, other persons. (2) “Dealer” has the same meaning as in Section 285 of the Vehicle Code. (3) “Vehicle” has the same meaning as in Section 670 of the Vehicle Code. (4) “Vehicle history database” means a database from which a person may obtain vehicle history information specific to a vehicle identification number (VIN). (5) “Vehicle history report provider” means an entity that generates vehicle history reports from a vehicle history database that are provided directly to consumers for the purpose of selling or purchasing a vehicle. “Vehicle history report provider” does not include a dealer that obtains a vehicle history report from a third party that is not an affiliate of the dealer and who then communicates the vehicle history report without altering the vehicle history information therein. (6) “Vehicle history information” includes, but is not limited to, any of the following related to a vehicle: (A) Accident or damage information. (B) The number of previous owners. (C) Information regarding service or maintenance history. (D) Odometer reading. (7) “Vehicle history report” means any written or electronic communication of vehicle history information made by a vehicle history report provider that is made available to consumers. (b) (1) Every vehicle history report shall clearly and conspicuously disclose the vehicle history report provider’s contact information by which an owner can submit an inquiry regarding the vehicle history information contained in a vehicle history report, including a request for a vehicle history report provider to research and address any potential discrepancies found within the vehicle history report. (2) A vehicle history report provider shall confirm receipt of a California resident’s inquiry under paragraph (1) promptly, within three days of receipt. The confirmation shall include a means to obtain regular updates until the request is completed. (3) A vehicle history report provider shall use reasonable efforts to complete the inquiry within 14 days from the date it was received. If there is a delay in completing the inquiry that is beyond the reasonable control of the vehicle history report provider, the 14-day requirement is waived and the vehicle history report provider shall promptly notify the consumer of the delay no later than the 15th day from the date the inquiry was received and shall provide the requester weekly updates thereafter until the inquiry is completed. (c) Any attempted waiver of the provisions of this section is contrary to public policy, and is void and unenforceable. (d) This section does not relieve any party of its responsibilities under Section 11713.26 of the Vehicle Code. To the extent that a provision of this section conflicts with Section 11713.26 of the Vehicle Code, Section 11713.26 of the Vehicle Code shall control. (Added by Stats. 2022, Ch. 863, Sec. 1. (AB 1871) Effective January 1, 2023.)
  46. 1784.20.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. )

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    This section names the title the California Combating Auto Retail Scams (CARS) Act and says it may be cited by that name.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.20. This title shall be known, and may be cited, as the California Combating Auto Retail Scams (CARS) Act. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  47. 1784.21.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. )

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    A consumer cannot validly waive the provisions of this title; any such waiver is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.21. Any waiver by a consumer of the provisions of this title is contrary to public policy and is unenforceable and void. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  48. 1784.22.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. )

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    This title’s remedies are not exclusive and are added to any other remedies available under other law.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.22. The provisions of this title are not exclusive. The remedies provided in this title for a violation of this title or for conduct proscribed by this title shall be in addition to any other remedies available under other law. This title does not limit or alter the remedies and liabilities set forth in other laws that may apply. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  49. 1784.23.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. )

    Verify source ↗

    If part of this title is held unconstitutional or invalid, the rest still applies.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.23. If any provision of this title or the application of this title to any person or circumstance is held to be unconstitutional or otherwise deemed to be invalid, the remainder of the title and the application of the provision to other persons or circumstances shall not be affected. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  50. 1784.28.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. )

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    This title becomes operative on October 1, 2026.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 1. General Provisions [1784.20 - 1784.28] ( Chapter 1 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.28. This title shall become operative on October 1, 2026. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026.)
  51. 1784.30.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 2. Construction and Definitions [1784.30 - 1784.31] ( Chapter 2 added by Stats. 2025, Ch. 354, Sec. 1. )

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    This title must be read and applied broadly to protect buyers and lessees of new or used motor vehicles from unfair and deceptive business practices and to support efficient, economical protection procedures.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 2. Construction and Definitions [1784.30 - 1784.31] ( Chapter 2 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.30. This title shall be liberally construed and applied to promote its underlying purposes, which are to protect purchasers and lessees of new or used motor vehicles against unfair and deceptive business practices and to provide efficient and economical procedures to secure that protection. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  52. 1784.31.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 2. Construction and Definitions [1784.30 - 1784.31] ( Chapter 2 added by Stats. 2025, Ch. 354, Sec. 1. )

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    This section defines terms used in the CARS Act, including dealer, add-on, GAP agreement, motor vehicle, restocking fee, service contract, total price, and used vehicle.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 2. Construction and Definitions [1784.30 - 1784.31] ( Chapter 2 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.31. The following definitions apply for purposes of this title: (a) “Add-on” or “add-on product or service” means any product or service not provided to the purchaser or lessee or installed on the vehicle by the vehicle manufacturer and for which the dealer, directly or indirectly, charges a purchaser or lessee in connection with a vehicle sale, lease, or financing transaction. (b) “Auction” means a sale transaction conducted by means of oral, written, or electronic exchanges whereby offers are solicited from one or more potential purchasers in the form of bids in an effort to advance the amount of the bids to obtain the highest and most favorable offer. (c) “Dealer” means a licensed California motor vehicle dealer or a dealer as defined in Section 285 of the Vehicle Code. (d) “GAP agreement” means an agreement for either of the following: (1) To indemnify a vehicle purchaser or lessee for the difference between the actual cash value of the vehicle in the event of an unrecovered theft or total loss and the amount owed on the vehicle pursuant to the terms of a loan, lease agreement, or installment sales contract used to purchase or lease the vehicle. (2) To waive the unpaid difference between money received from the purchaser’s or lessee’s vehicle insurer and some or all of the amount owed on the vehicle at the time of the unrecovered theft or total loss, including products or services titled “guaranteed automobile protection agreement,” “guaranteed asset protection agreement,” “GAP insurance,” or “GAP waiver.” (e) “Material” or “materially” means likely to affect a person’s choice of, or conduct regarding, goods or services. (f) (1) “Motor vehicle” or “vehicle” means a motor vehicle as defined by Section 415 of the Vehicle Code. (2) Notwithstanding paragraph (1), “motor vehicle” or “vehicle” does not include any of the following: (A) Vehicles that are sold wholesale. For purposes of this subparagraph, “wholesale” means sale of a vehicle that does not constitute a retail sale, as defined in Section 6007 of the Revenue and Taxation Code. (B) Vehicles that are not required to be registered under the Vehicle Code. (C) Fleet sale transactions. For purposes of this subparagraph, “fleet sale” means the sale of more than one vehicle as part of a single transaction for use primarily for business or commercial purposes. (D) Sales to commercial purchasers. For the purposes of this subparagraph, “commercial purchasers” means a person that purchases five or more vehicles from the dealer per year for use primarily for business or commercial purposes. (E) A vehicle that has a gross vehicle weight rating of 10,000 pounds or more. (g) “Restocking fee” means the following fees that the dealer may charge a buyer or lessee who exercises the three-day right to cancel: (1) (A) One and one-half percent of the sale price of the vehicle, but not less than two hundred dollars ($200) and not more than six hundred dollars ($600). (B) In lieu of the fee in subparagraph (A), a dealer that charged the buyer or lessee a shipping fee for transporting the vehicle may retain the cost the dealer actually incurred for shipping, provided that the amount retained does not exceed the amount that would otherwise be permitted under subparagraph (A). The dealer shall refund to the buyer or lessee the balance, if any, between the amounts charged and retained. (2) If the vehicle has been driven over 250 miles, the dealer may also charge the buyer or lessee an additional one dollar ($1) for each mile over 250 miles, but this amount shall not exceed one hundred fifty dollars ($150). (h) “Service contract” includes products that provide consumers with some type of benefit or payment for repair, maintenance, or service on the vehicle purchased or leased. (i) (1) “Three-day,” as used in the phrase “three-day right to cancel,” means the period in which a buyer or lessee of a used vehicle may exercise the right to cancel the purchase or lease as provided in Section 1784.43. Except as provided in paragraph (2), this period consists of the three calendar day period commencing the calendar day after the purchase or lease is executed. (2) If the third day in the three calendar day period described in paragraph (1) falls on a day the dealership is closed to the public, the three-day right to cancel period extends to the next day the dealership is open to the public. (3) The three-day right to cancel ends at the close of business on the last day of the period described in this subdivision. (j) (1) “Total price” means the total sale price of a vehicle, excluding the taxes, fees, and charges described in subdivision (e) of Section 11713.1 of the Vehicle Code. (2) “Total price” includes any dealer price adjustment and the cost of any item installed on the vehicle at the time of the advertisement or communication. (3) “Total price” does not include any deduction for a rebate. (k) (1) “Used motor vehicle” or “used vehicle” means a vehicle, as defined by subdivision (f), that also satisfies the definition of a “used vehicle” as defined in Section 665 of the Vehicle Code. (2) “Used motor vehicle” does not include a motorcycle, as defined in Section 400 of the Vehicle Code. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  53. 1784.40.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. )

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    Dealers must not make misrepresentations about material information in vehicle sales, financing, leasing, add-on products, trade-ins, preapproval, or related government affiliation and disclosure topics.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.40. It is a violation of this title for any dealer to make any misrepresentation regarding material information about any of the following: (a) The costs or terms of purchasing, financing, or leasing a vehicle. (b) Any costs, limitation, benefit, or any other aspect of an add-on product or service. (c) Whether the final contract is for the lease or sale of a motor vehicle. This subdivision shall not be construed to restrict the ability of a dealer to present multiple financing and lease payment options to the customer prior to the sale or lease of a motor vehicle. (d) The availability of vehicles at a total price communicated by the dealer. A dealer is not in violation of this subdivision if the advertisement in question is withdrawn following the sale of the vehicle in compliance with subdivision (c) of Section 11713 of the Vehicle Code. (e) Whether any consumer has been or will be preapproved or guaranteed for any product, service, or term. (f) Information on or about a consumer’s application for financing. (g) Whether the dealer will keep cash downpayments or trade-in vehicles, charge fees, or initiate legal process, or any action if a transaction is not finalized or if the consumer does not go forward with the transaction. (h) Whether, and if so, when, a dealer will pay off some or all of the financing or a lease on a consumer’s trade-in vehicle, and what happens if a dealer fails to pay off the trade-in vehicle within the time period required by Section 11709.4 of the Vehicle Code. (i) The remedy available if a dealer fails to sell or lease a vehicle at the total price. (j) Whether the dealer or any of the dealer’s personnel or products or services is or was affiliated with, endorsed or approved by, or otherwise associated with the United States government or any federal, state, or local governmental agency, unit, or department, including the United States Department of Defense or its military departments. (k) Whether, or under what circumstances, a vehicle may be repossessed. (l) Whether a vehicle can be moved outside of California or outside of the United States. (m) Any of the required disclosures identified in this title. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  54. 1784.41.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. )

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    Dealers must make required disclosures clearly and conspicuously when advertising or negotiating vehicle sales or financing, and some disclosures must also be kept and provided on request.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.41. It is a violation of this title for any dealer to fail to make any disclosure required by this section clearly and conspicuously. (a) In connection with the sale or financing of a vehicle, a vehicle’s total price shall be disclosed as follows: (1) In any advertisement that references a specific vehicle for sale. (2) In any advertisement that represents any monetary amount or financing term for a specific vehicle. (3) In the first written communication with a consumer that includes a reference regarding a specific vehicle for sale, or any monetary amount or financing term for any vehicle. With respect to the first written communication, both of the following apply: (A) The total price for the vehicle shall be disclosed at least once in the dealer’s first response regarding that specific vehicle to the consumer. (B) A dealer shall retain a copy of the communication identified by this paragraph for at least two years and shall provide a copy of the communication to the customer upon written request. (b) When making any written representation during the negotiation to purchase or lease a specific vehicle about an add-on product or service, the dealer shall disclose at least once that the add-on is not required and the consumer can purchase or lease the vehicle without the add-on. This disclosure shall be in writing and shall be clear and conspicuous. If the transaction is negotiated primarily in a language identified by subdivision (b) of Section 1632, the disclosure required by this paragraph shall also be provided in that language. (c) (1) When making any written representation during the negotiation to purchase or lease a specific vehicle about a monthly payment for any vehicle, the dealer shall disclose at least once, clearly and conspicuously and in writing, the total amount the consumer will pay to purchase or lease the vehicle at that monthly payment after making all payments as scheduled. (2) If the total amount disclosed assumes the consumer will provide consideration, including in the form of a cash downpayment or trade-in valuation, the dealer shall disclose the amount of consideration to be provided by the consumer. This disclosure shall be in writing and shall be clear and conspicuous. If the transaction is negotiated primarily in a language identified by subdivision (b) of Section 1632, the disclosure required by this paragraph shall also be provided in that language. (d) If the dealer makes any written comparison between payment options during the negotiation to purchase or lease a specific vehicle that includes discussion of lower monthly payments, the dealer shall disclose that lower monthly payments often increase the total amount the consumer will pay to purchase or lease the vehicle. Use of an internet-based tool that allows consumers to adjust financing parameters shall not constitute a violation of this section. (e) The disclosures required by subdivisions (b), (c), and (d) may be incorporated into a document that includes the written disclosures required by Section 2982.2. (f) Subdivision (a) shall not be construed to modify vehicle advertising requirements in Section 11713.1 or Section 11713.16 of the Vehicle Code. This includes, but is not limited to, the advertisement or communication of rebates and incentives that are disclosed separately from a vehicle’s total price. (g) This section shall not apply to a used vehicle sold at an auction. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  55. 1784.42.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. )

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    A dealer selling or financing a vehicle may not charge for add-on products or services that do not benefit the buyer or lessee, and must pay the add-on provider within 10 days after signing unless a later payment agreement applies without harming coverage.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.42. It is a violation of this title for any dealer, in connection with the sale or financing of vehicles, to charge for any of the following. (a) A dealer may not charge for an add-on product or service if the vehicle purchaser or lessee would not benefit from the add-on product or service, including, as applicable, any of the following: (1) Nitrogen-filled tire-related products or services that contain less than 95-percent nitrogen purity. (2) Products or services that do not provide coverage for the vehicle, the consumer, or the transaction. (3) A GAP agreement that is not in compliance with Section 2982, 2982.2, or 2982.12. (4) A service contract if the service contract is void due to preexisting conditions, including prior damage from a crash or flood or preexisting mechanical conditions. (5) Oil changes for electric vehicles. (6) Catalytic converter markings for a vehicle that does not have a catalytic converter. (7) Surface protection product that renders the manufacturer’s warranty for the paint job void. (b) A dealer shall pay the person or entity who is supposed to provide the benefit of the add-on within 10 days of the date when the car buyer or lessee signs the purchase or lease, unless the dealer has an agreement with the person or entity that provides for payment at a later date and the buyer’s or lessee’s coverage is not impacted by the later payment. (c) This section does not prohibit a dealer from charging for an add-on product or service, such as a service contract, if the add-on product or service is selected by, and would benefit, the vehicle purchaser or lessee, even if the vehicle purchaser or lessee ultimately does not choose to use the add-on product or service, and even if the vehicle purchaser or lessee does not use the add-on product or service because a coverage event does not occur. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  56. 1784.43.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. )

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    Dealers selling or leasing used vehicles at retail for $50,000 or less must give the buyer or lessee a three-day right to cancel, and must follow refund and disclosure rules if cancellation is used.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.43. (a) (1) (A) A dealer shall not sell or lease a used vehicle at retail at a price equal to or less than fifty thousand dollars ($50,000) without providing the buyer or lessee with a three-day right to cancel the purchase or lease. (B) The right to cancel does not apply if the used vehicle has been driven more than 400 miles between the execution of the sale or lease agreement and the date on which the buyer or lessee attempts to exercise the right. (2) (A) A dealer may charge a buyer or lessee who exercises the right to cancel a restocking fee. Except as provided in subparagraph (B), the dealer may collect the restocking fee on the date the buyer or lessee exercises the right to cancel. (B) (i) If the buyer or lessee is entitled to any refund, the restocking fee shall be deducted from the refund. (ii) If the refund does not cover the full amount of the restocking fee, the balance is due at the time the buyer or lessee exercises the right to cancel. (3) (A) If the right to cancel is exercised, the dealer shall return the buyer’s or lessee’s trade-in vehicle and all keys the buyer or lessee provided, if any, unless the dealer has sold or otherwise initiated the process to transfer the title of the trade-in vehicle, in which case the refund for the trade-in vehicle is the greater of the following: (i) The agreed-upon value of the trade-in vehicle in the sales or lease agreement. (ii) The amount for which the dealer sold the trade-in vehicle. (iii) The fair market value of the trade-in vehicle. (B) The dealer may deduct from the amount required by subparagraph (A) the amount necessary to satisfy outstanding indebtedness secured by the trade-in vehicle. The dealer shall provide the buyer or lessee a receipt documenting the cancellation that includes an itemized breakdown of the basis for each deduction. The receipt shall include the date and time when the buyer or lessee exercised the right to cancel. (C) For the purposes of clause (iii) of subparagraph (A), the dealer shall have a rebuttable presumption of establishing the fair market value by either of the two valuation methods: (i) The valuation equals the amount identified in a written offer to purchase the trade-in vehicle received by the buyer or lessee, and honored by the dealer, and that offer is valid for at least seven days. (ii) The valuation equals the vehicle’s trade-in valuation when the right to cancel was exercised, as identified in a nationally recognized pricing guide selected by the dealer, and considering the vehicle’s condition at the time the vehicle was traded in. For the purposes of this clause, “nationally recognized pricing guide” has the same meaning as paragraph (2) of subdivision (c) of Section 11950 of the Vehicle Code. (b) Notwithstanding Section 2981.9 of the Civil Code, a dealer shall provide the buyer or lessee of a used vehicle subject to the right to cancel a copy of a disclosure titled “3-Day Right to Cancel Used Car Purchase or Lease” on a separate document. If the transaction is negotiated primarily in a language identified by subdivision (b) of Section 1632, the disclosure required by this subdivision shall also be provided in that language. The disclosure shall clearly and conspicuously contain all of the following: (1) The name of the selling or leasing dealer and the buyer or lessee. (2) A description and the vehicle identification number of the vehicle purchased. (3) A statement specifying the time within which the buyer or lessee must exercise the right to cancel the sale or lease and return the vehicle to the dealer. (4) A statement that although the dealer cannot charge the buyer or lessee for the right to cancel the purchase or lease, the dealer may charge the buyer or lessee a restocking fee. The statement shall describe how both components of the restocking fee are calculated. (5) A statement that the buyer or lessee cannot exercise the right to cancel if the vehicle has been driven more than 400 miles. (6) A statement that the right to cancel applies only if all of the following are personally delivered to the selling or leasing dealer during business hours by the buyer or lessee at the time the right to cancel is exercised: (A) Restocking fees, except to the extent they are deducted from any refund as required by this section. (B) The vehicle, meeting both of the following: (i) Free of all liens and encumbrances, other than any lien or encumbrance created by or incidental to the sales or lease transaction. (ii) In the same condition as when it was delivered by the dealer to the buyer or lessee, except reasonable wear and tear and any defect or mechanical problem that manifests or becomes evident after delivery that was not caused by the buyer or lessee. The dealer shall maintain documentation describing any damage beyond reasonable wear and tear. (C) Any other cash or items received by the buyer or lessee in connection with the sale or lease of the vehicle. (7) A statement that the dealer may require the buyer or lessee to execute documents reasonably necessary to effectuate the cancellation and refund and as reasonably required to comply with applicable law. (8) (A) A statement that if the dealer has sold or otherwise initiated the process to transfer title of the buyer’s or lessee’s trade-in vehicle, the dealer shall pay the buyer or lessee the greater of the following: (i) The agreed-upon value of the trade-in vehicle in the sales or lease agreement. (ii) The amount for which the dealer sold the trade-in vehicle. (iii) The fair market value of the trade-in vehicle. (B) A statement that the amount of the refund may be reduced as necessary to satisfy outstanding indebtedness secured by the trade-in vehicle. (9) A statement that if the dealer represents to the buyer or lessee that it sold the trade-in vehicle, it must provide the buyer or lessee a copy of the document showing the sale of the trade-in vehicle. The dealer shall redact the personal information of the person or entity to whom the trade-in vehicle was sold. (c) It is a violation of this title for any dealer, in connection with a buyer or lessee exercising the right to cancel, to do any of the following: (1) Anything to impede a buyer or lessee from exercising the right to cancel the purchase or lease of a vehicle as provided in this title. (2) Overcharge the buyer or lessee for the restocking fee. (3) Withhold the buyer’s or lessee’s downpayment or trade-in vehicle after the right to cancel has been exercised. (4) Fail to timely refund the buyer’s or lessee’s downpayment after the right to cancel has been exercised. (5) Fail to refund the amount owed for the buyer’s or lessee’s trade-in vehicle if the trade-in vehicle has been sold. (6) Fail to provide the buyer or lessee the receipt or contract for the sale of the buyer’s or lessee’s trade-in vehicle. (7) Claim damage to the vehicle in excess of reasonable wear and tear without reasonable basis. (8) Claim the person authorized to return the buyer’s or lessee’s downpayment or trade-in vehicle is not available. (d) (1) No later than 48 hours after the buyer or lessee exercises the right to cancel pursuant to this section, the dealer shall cancel the contract and provide the buyer or lessee with a full refund, minus any deduction allowed by this section. The dealer is not responsible for any delays outside the control of the dealer, including delays attributable to the processing of a refund by a bank, credit card company, or other financial institution. (2) Notwithstanding paragraph (1), in the event the buyer or lessee made a payment through a method that does not result in an immediate verified transfer of funds to the dealer, such as a check, the dealer may delay providing the refund until two business days after the buyer or lessee’s payment is verified. The dealer shall provide the buyer or lessee with documentation showing when the verification occurred. (e) The dealer will clearly and conspicuously disclose on the first page of the purchase or lease agreement the following: “CALIFORNIA DOES NOT HAVE A COOLING-OFF PERIOD FOR NEW VEHICLES. HOWEVER, IF YOU PURCHASED OR LEASED A USED VEHICLE FOR $50,000 OR LESS, YOU HAVE 3 DAYS TO CANCEL THIS CONTRACT FOR ANY REASON. ADDITIONAL RESTRICTIONS MAY APPLY, INCLUDING A RESTOCKING FEE. You have up to 3 days to return the vehicle to the dealer and cancel this contract and obtain a refund. Please review the disclosure, which the dealer is required by law to provide, for the details about this right and how to exercise it.” (f) This section does not affect the ability of a buyer to rescind the contract or revoke acceptance under any other law. (g) This section does not apply to a used vehicle with a purchase price greater than fifty thousand dollars ($50,000). (h) This section does not apply to the sale of a leased vehicle to the lessee if the lessee is in possession of the vehicle prior to the time of the sale. (i) This section does not apply to a used vehicle sold at an auction, provided the used vehicle is in compliance with the requirements of Division 12 (commencing with Section 24000) of the Vehicle Code. (j) This section shall not be construed to limit the ability of a dealer to offer a right to cancel that provides greater consumer protections than those outlined in this section, including a right to cancel for additional vehicles, a longer return period, or reduced restocking fees. In such circumstances, the dealer may elect to make corresponding changes that describe these greater consumer protections in any consumer notice required by this section or Section 11709.2 of the Vehicle Code. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  57. 1784.44.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. )

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    Dealers covered by this title must keep records showing compliance for two years, and they may store those records in any legible form and in the same way they normally keep business records.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act [1784.20 - 1784.44] ( Title 1.5B added by Stats. 2025, Ch. 354, Sec. 1. ) ## CHAPTER 3. Prohibited Conduct and Consumer Rights [1784.40 - 1784.44] ( Chapter 3 added by Stats. 2025, Ch. 354, Sec. 1. ) ## 1784.44. (a) A dealer subject to this title shall create and retain, for a period of two years from the date the record is created, all records necessary to demonstrate compliance with this title, including the following records: (1) Records demonstrating that communications and advertisements of a vehicle’s total price meet the requirements of subdivision (a) of Section 1784.41. For purposes of this paragraph, “advertisement” includes internet-based listings that display a vehicle’s total price, features, or financing terms disseminated by the dealer. This paragraph shall not require retention of records generated solely by interactive tools that allow consumers to adjust variables such as downpayment, credit tier, interest rate, or loan term to receive personalized financing estimates, provided the tools do not alter or misrepresent the vehicle’s total price as advertised. (2) Copies of all purchase orders, financing and lease documents with the dealer signed by the consumer, whether or not final approval or assignment of the contract is received from a financing or lease transaction, and all written communications relating to sales, financing, or leasing between the dealer and any car buyer or lessee who signs a purchase order or financing or lease contract with the dealer. (3) Records demonstrating that add-ons in a consumer’s contract meet the requirements of Section 1784.42, including copies of all service contracts, GAP agreements, proof of timely payment for add-ons, and calculations of loan-to-value ratios in contracts including GAP agreements. (4) Copies of all cancellation requests, proof of refunds of downpayments or other consideration provided in the purchase of a vehicle, and proof of return of trade-in vehicles. (5) Copies of all written complaints sent by car buyers or lessees to the dealer relating to sales, financing, leasing, or cancellation requests under Section 1784.43, written inquiries related to add-ons, and written inquiries and responses about vehicles referenced in Section 1784.41. For the purposes of this paragraph, “complaints” does not include responses to customer surveys or reviews, or testimonials posted on the internet. (b) A dealer subject to this part may keep the records required by subdivision (a) in any legible form, and in the same manner, format, or place as they already keep records in the ordinary course of business. Failure to keep all records required under subdivision (a) is a violation of this title. (c) This section does not limit the requirements imposed by Section 2984.5. (Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.)
  58. 1785.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. )

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    This section says consumer credit reporting agencies must use reasonable procedures that are fair to consumers and protect confidentiality, accuracy, relevancy, and proper use of consumer information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. ) ## 1785.1. The Legislature finds and declares as follows: (a) An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, and general reputation of consumers. (b) Consumer credit reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers. (c) There is a need to insure that consumer credit reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy. (d) It is the purpose of this title to require that consumer credit reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, hiring of a dwelling unit, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title. (e) The Legislature hereby intends to regulate consumer credit reporting agencies pursuant to this title in a manner which will best protect the interests of the people of the State of California. (f) The extension of credit is a privilege and not a right. Nothing in this title shall preclude a creditor from denying credit to any applicant providing such denial is based on factors not inconsistent with present law. (g) Any clauses in contracts which prohibit any action required by this title are not in the public interest and shall be considered unenforceable. This shall not invalidate the other terms of such a contract. (Amended by Stats. 1982, Ch. 1127, Sec. 1.)
  59. 1785.10.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must let a properly identified consumer inspect their file and disclose specified information and recipient/inquiry records, with limited exemptions for certain address and phone-number details.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.10. (a) Every consumer credit reporting agency shall, upon request and proper identification of any consumer, allow the consumer to visually inspect all files maintained regarding that consumer at the time of the request. (b) Every consumer reporting agency, upon contact by a consumer by telephone, mail, or in person regarding information which may be contained in the agency files regarding that consumer, shall promptly advise the consumer of his or her rights under Sections 1785.11.8, 1785.19, and 1785.19.5, and of the obligation of the agency to provide disclosure of the files in person, by mail, or by telephone pursuant to Section 1785.15, including the obligation of the agency to provide a decoded written version of the file or a written copy of the file with an explanation of any code, including any credit score used, and the key factors, as defined in Section 1785.15.1, if the consumer so requests that copy. The disclosure shall be provided in the manner selected by the consumer, chosen from among any reasonable means available to the consumer credit reporting agency. The agency shall determine the applicability of subdivision (1) of Section 1785.17 and, where applicable, the agency shall inform the consumer of the rights under that section. (c) All information on a consumer in the files of a consumer credit reporting agency at the time of a request for inspection under subdivision (a), shall be available for inspection, including the names, addresses and, if provided by the sources of information, the telephone numbers identified for customer service for the sources of information. (d) (1) The consumer credit reporting agency shall also disclose the recipients of any consumer credit report on the consumer which the consumer credit reporting agency has furnished: (A) For employment purposes within the two-year period preceding the request. (B) For any other purpose within the 12-month period preceding the request. (2) Disclosure of recipients of consumer credit reports for purposes of this subdivision shall include the name of the recipient or, if applicable, the fictitious business name under which the recipient does business disclosed in full. The identification shall also include the address and, if provided by the recipient, the telephone number identified for customer service for the recipient. (e) The consumer credit reporting agency shall also disclose a record of all inquiries received by the agency in the 12-month period preceding the request that identified the consumer in connection with a credit transaction which is not initiated by the consumer. This record of inquiries shall include the name, address and, if provided by the recipient, the telephone number identified for customer service for each recipient making an inquiry. (f) Any consumer credit reporting agency when it is subject to the provisions of Section 1785.22 is exempted from the requirements of subdivisions (c), (d), and (e), only with regard to the provision of the address and telephone number. (g) Any consumer credit reporting agency, that provides a consumer credit report to another consumer credit reporting agency that procures the consumer credit report for the purpose of resale and is subject to Section 1785.22, is exempted from the requirements of subdivisions (d) and (e), only with regard to the provision of the address and telephone number regarding each prospective user to which the consumer credit report was sold. (h) This section shall become operative on January 1, 2003. (Repealed (in Sec. 1) and added by Stats. 2002, Ch. 9, Sec. 2. Effective February 19, 2002. Section operative January 1, 2003, by its own provisions.)
  60. 1785.10.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    A consumer credit reporting agency must not block or discourage a user from giving the consumer a copy of the consumer’s credit report when the user has taken adverse action based on the report.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.10.1. (a) It is unlawful for a consumer credit reporting agency to prohibit in any manner, including, but not limited to, in the terms of a contract enforceable in the state, or to dissuade or attempt to dissuade, a user of a consumer credit report furnished by the credit reporting agency from providing a copy of the consumer’s credit report to the consumer, upon the consumer’s request, if the user has taken adverse action against the consumer based in whole or in part upon information in the report. (b) The Attorney General, any district attorney or city attorney, or a city prosecutor in any city or city and county having a full-time city prosecutor, may bring a civil action in any court of competent jurisdiction against any credit reporting agency violating this section for a civil penalty not to exceed five thousand dollars ($5,000) which may be assessed and recovered in a civil action brought in the name of the people of the State of California. (Added by Stats. 2013, Ch. 433, Sec. 1. (AB 1220) Effective January 1, 2014.)
  61. 1785.11.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies may release consumer reports only for listed reasons, and consumers can opt out of certain prequalified marketing uses.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11. (a) A consumer credit reporting agency shall furnish a consumer credit report only under the following circumstances: (1) In response to the order of a court having jurisdiction to issue an order. (2) In accordance with the written instructions of the consumer to whom it relates. (3) To a person whom it has reason to believe: (A) Intends to use the information in connection with a credit transaction, or entering or enforcing an order of a court of competent jurisdiction for support, involving the consumer as to whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or (B) Intends to use the information for employment purposes; or (C) Intends to use the information in connection with the underwriting of insurance involving the consumer, or for insurance claims settlements; or (D) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider the applicant’s financial responsibility or status; or (E) Intends to use the information in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940; or (F) Otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer. (b) A consumer credit reporting agency may furnish information for purposes of a credit transaction specified in subparagraph (A) of paragraph (3) of subdivision (a), where it is a credit transaction that is not initiated by the consumer, only under the circumstances specified in paragraph (1) or (2), as follows: (1) The consumer authorizes the consumer credit reporting agency to furnish the consumer credit report to the person. (2) The proposed transaction involves a firm offer of credit to the consumer, the consumer credit reporting agency has complied with subdivision (d), and the consumer has not elected pursuant to paragraph (1) of subdivision (d) to have the consumer’s name excluded from lists of names provided by the consumer credit reporting agency for purposes of reporting in connection with the potential issuance of firm offers of credit. A consumer credit reporting agency may provide only the following information pursuant to this paragraph: (A) The name and address of the consumer. (B) Information pertaining to a consumer that is not identified or identifiable with a particular consumer. (c) Except as provided in paragraph (3) of subdivision (a) of Section 1785.15, a consumer credit reporting agency shall not furnish to any person a record of inquiries solely resulting from credit transactions that are not initiated by the consumer. (d) (1) A consumer may elect to have his or her name and address excluded from any list provided by a consumer credit reporting agency pursuant to paragraph (2) of subdivision (b) by notifying the consumer credit reporting agency, by telephone or in writing, through the notification system maintained by the consumer credit reporting agency pursuant to subdivision (e), that the consumer does not consent to any use of consumer credit reports relating to the consumer in connection with any transaction that is not initiated by the consumer. (2) An election of a consumer under paragraph (1) shall be effective with respect to a consumer credit reporting agency, and any affiliate of the consumer credit reporting agency, on the date on which the consumer notifies the consumer credit reporting agency. (3) An election of a consumer under paragraph (1) shall terminate and be of no force or effect following notice from the consumer to the consumer credit reporting agency, through the system established pursuant to subdivision (e), that the election is no longer effective. (e) Each consumer credit reporting agency that furnishes a prequalifying report pursuant to subdivision (b) in connection with a credit transaction not initiated by the consumer shall establish and maintain a notification system, including a toll-free telephone number, that permits any consumer, with appropriate identification and for which the consumer credit reporting agency has a file, to notify the consumer credit reporting agency of the consumer’s election to have the consumer’s name removed from any list of names and addresses provided by the consumer credit reporting agency, and by any affiliated consumer credit reporting agency, pursuant to paragraph (2) of subdivision (b). Compliance with the requirements of this subdivision by a consumer credit reporting agency shall constitute compliance with those requirements by any affiliate of that consumer credit reporting agency. (f) Each consumer credit reporting agency that compiles and maintains files on consumers on a nationwide basis shall establish and maintain a notification system under paragraph (1) of subdivision (e) jointly with its affiliated consumer credit reporting agencies. (Amended by Stats. 2002, Ch. 664, Sec. 40. Effective January 1, 2003.)
  62. 1785.11.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumers may request a security alert on their credit report, and consumer credit reporting agencies must handle notices, alerts, and related disclosures on specific timelines.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.1. (a) A consumer may elect to place a security alert in his or her credit report by making a request in writing or by telephone to a consumer credit reporting agency. “Security alert” means a notice placed in a consumer’s credit report, at the request of the consumer, that notifies a recipient of the credit report that the consumer’s identity may have been used without the consumer’s consent to fraudulently obtain goods or services in the consumer’s name. (b) A consumer credit reporting agency shall notify each person requesting consumer credit information with respect to a consumer of the existence of a security alert in the credit report of that consumer, regardless of whether a full credit report, credit score, or summary report is requested. (c) Each consumer credit reporting agency shall maintain a toll-free telephone number to accept security alert requests from consumers 24 hours a day, seven days a week. (d) The toll-free telephone number shall be included in any written disclosure by a consumer credit reporting agency to any consumer pursuant to Section 1785.15 and shall be printed in a clear and conspicuous manner. (e) A consumer credit reporting agency shall place a security alert on a consumer’s credit report no later than five business days after receiving a request from the consumer. (f) The security alert shall remain in place for at least 90 days, and a consumer shall have the right to request a renewal of the security alert. (g) Any person who uses a consumer credit report in connection with the approval of credit based on an application for an extension of credit, or with the purchase, lease, or rental of goods or non-credit-related services and who receives notification of a security alert pursuant to subdivision (a) may not lend money, extend credit, or complete the purchase, lease, or rental of goods or non-credit-related services without taking reasonable steps to verify the consumer’s identity, in order to ensure that the application for an extension of credit or for the purchase, lease, or rental of goods or non-credit-related services is not the result of identity theft. If the consumer has placed a statement with the security alert in his or her file requesting that identity be verified by calling a specified telephone number, any person who receives that statement with the security alert in a consumer’s file pursuant to subdivision (a) shall take reasonable steps to verify the identity of the consumer by contacting the consumer using the specified telephone number prior to lending money, extending credit, or completing the purchase, lease, or rental of goods or non-credit-related services. If a person uses a consumer credit report to facilitate the extension of credit or for another permissible purpose on behalf of a subsidiary, affiliate, agent, assignee, or prospective assignee, that person may verify a consumer’s identity under this section in lieu of the subsidiary, affiliate, agent, assignee, or prospective assignee. (h) For purposes of this section, “extension of credit” does not include an increase in the dollar limit of an existing open-end credit plan, as defined in Regulation Z issued by the Board of Governors of the Federal Reserve System (12 C.F.R. 226.2), or any change to, or review of, an existing credit account. (i) If reasonable steps are taken to verify the identity of the consumer pursuant to subdivision (b) of Section 1785.20.3, those steps constitute compliance with the requirements of this section, except that if a consumer has placed a statement including a telephone number with the security alert in his or her file, his or her identity shall be verified by contacting the consumer using that telephone number as specified pursuant to subdivision (g). (j) A consumer credit reporting agency shall notify each consumer who has requested that a security alert be placed on his or her consumer credit report of the expiration date of the alert. (k) Notwithstanding Section 1785.19, any consumer credit reporting agency that recklessly, willfully, or intentionally fails to place a security alert pursuant to this section shall be liable for a penalty in an amount of up to two thousand five hundred dollars ($2,500) and reasonable attorneys’ fees. (Amended by Stats. 2003, Ch. 907, Sec. 1.5. Effective January 1, 2004. Operative July 1, 2004, by Sec. 8 of Ch. 907. Note: Previously, the amendment by Stats. 2003, Ch. 533, was operative from Jan. 1 until July 1, 2004, as authorized by Sec. 6 of Stats. 2003, Ch. 907.)
  63. 1785.11.10.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    This section says Sections 1785.11.9 to 1785.11.11 do not apply in several listed situations involving a protected consumer’s credit report or record.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.10. Sections 1785.11.9 to 1785.11.11, inclusive, do not apply to the use of a protected consumer’s consumer credit report or record by any of the following: (a) A person or entity listed in paragraph (1) or (2) of subdivision (l) of Section 1785.11.2, or Section 1785.11.4 or 1785.11.6. (b) A person administering a credit file monitoring subscription service to which the representative of the protected consumer has subscribed on behalf of the protected consumer. (c) A person who provides the protected consumer or the protected consumer’s representative with a copy of the protected consumer’s consumer credit report at the request of the protected consumer or at the request of the protected consumer’s representative. (d) Any state or local agency, law enforcement agency, trial court, or private collection agency acting pursuant to a court order, warrant, or subpoena. (e) A child support agency acting pursuant to Chapter 2 (commencing with Section 17400) of Division 17 of the Family Code and Title IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.). (f) The State Department of Health Care Services or its agents or assigns acting to investigate Medi-Cal fraud. (g) The Franchise Tax Board or its agents or assigns acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities. (Added by Stats. 2016, Ch. 494, Sec. 2. (AB 1580) Effective January 1, 2017.)
  64. 1785.11.11.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must place and later remove a security freeze for a protected consumer when the statute’s request and proof requirements are met.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.11. (a) (1) A consumer credit reporting agency shall place a security freeze for a protected consumer if both of the following occur: (A) The consumer credit reporting agency receives a request from the protected consumer’s representative for the placement of the security freeze pursuant to this section. (B) The protected consumer’s representative does all of the following: (i) Submits the request to the consumer credit reporting agency at the address or other point of contact and in the manner specified by the consumer credit reporting agency. (ii) Provides to the consumer credit reporting agency sufficient proof of identification of the protected consumer and the representative. (iii) Provides to the consumer credit reporting agency sufficient proof of authority to act on behalf of the protected consumer. (iv) Pays to the consumer credit reporting agency a fee as authorized by subdivision (i). (2) (A) If the request for the placement or removal of a security freeze is for a protected consumer who has been placed in a foster care setting, the credit reporting agency shall deem the requirements of clauses (ii) and (iii) of subparagraph (B) of paragraph (1) to have been met if the request is from a county welfare department or a county probation department appearing on the most recent list provided or available to a consumer credit reporting agency by the State Department of Social Services and the requesting entity provides sufficient proof of identification under 15 U.S.C. Sec. 1681c-1(j)(1)(G). A county welfare department or county probation department shall not have the authority to request a security freeze for a protected consumer placed in foster care that continues beyond the protected consumer’s 18th birthday. A consumer credit reporting agency may use whatever lawful mechanism is available to it, including mechanisms for thawing or unfreezing reports by dates certain, to ensure the freeze does not extend beyond a protected consumer’s 18th birthday. (B) Notwithstanding any other law, the State Department of Social Services may, at the request of a consumer credit reporting agency, provide or, in the State Department of Social Service’s discretion, otherwise make available to consumer reporting agencies in any other manner, a list of county welfare departments or county probation departments whose employees may be representatives of protected consumers who have been placed in a foster care setting. (b) If a consumer credit reporting agency does not have a file pertaining to a protected consumer when the consumer credit reporting agency receives a request pursuant to paragraph (1) of subdivision (a), the consumer credit reporting agency shall create a record for the protected consumer. (c) If a protected consumer’s representative requests a security freeze, the consumer credit reporting agency shall disclose the process for placing and removing a security freeze. (d) Within 30 days after receiving a request that meets the requirements of subdivision (a), a consumer credit reporting agency shall place a security freeze for the protected consumer. The consumer credit reporting agency shall send written confirmation of the security freeze to the address on file within 10 days of the placement of the security freeze. (e) Unless a security freeze for a protected consumer is removed pursuant to subdivision (h) or (j), a consumer credit reporting agency shall not release the protected consumer’s consumer credit report, any information derived from the protected consumer’s consumer credit report, or any record created for the protected consumer. (f) A security freeze for a protected consumer placed pursuant to this section shall remain in effect until either of the following occurs: (1) The protected consumer or the protected consumer’s representative requests that the consumer credit reporting agency remove the security freeze in accordance with subdivision (h). (2) The security freeze is removed in accordance with subdivision (j). (g) To remove a security freeze, a protected consumer or a protected consumer’s representative shall do all of the following: (1) Submit a request for removal of the security freeze to the consumer credit reporting agency at the address or other point of contact and in the manner specified by the consumer credit reporting agency. (2) Provide to the consumer credit reporting agency: (A) If the request is made by the protected consumer: (i) Proof that the sufficient proof of authority for the protected consumer’s representative to act on behalf of the protected consumer is no longer valid, they have been emancipated, or they are 16 years of age or older. (ii) Sufficient proof of identification of the protected consumer. (B) If the request is made by the representative of a protected consumer: (i) Sufficient proof of identification of the protected consumer and the representative. (ii) Sufficient proof of authority to act on behalf of the protected consumer. (3) Pay to the consumer credit reporting agency a fee as authorized by subdivision (i). (h) Within 30 days after receiving a request that meets the requirements of subdivision (g), a consumer credit reporting agency shall remove a security freeze for a protected consumer. (i) (1) Except as provided in paragraph (2), a consumer credit reporting agency may not charge a fee for any service performed pursuant to this section. (2) A consumer credit reporting agency is authorized to charge a reasonable fee, not exceeding ten dollars ($10), for each placement or removal of a security freeze for a protected consumer. (3) Notwithstanding paragraph (2), a consumer credit reporting agency shall not charge any fee pursuant to this section under any of the following circumstances: (A) The protected consumer’s representative has received a report of alleged identity theft against the protected consumer under Section 530.5 of the Penal Code and has provided copy of the report to the consumer credit reporting agency. (B) The request for the placement or removal of a security freeze is for a protected consumer who is under 16 years of age at the time of the request and the consumer credit reporting agency has a report pertaining to the protected consumer. (C) The request for the placement or removal of a security freeze is for a protected consumer who has been placed in a foster care setting. (j) (1) A consumer credit reporting agency is authorized to remove a security freeze for a protected consumer or to delete a record of a protected consumer if the security freeze was placed or the record was created based upon a material misrepresentation of fact by the protected consumer or the protected consumer’s representative. (2) With respect to a security freeze placed for a protected consumer under paragraph (2) of subdivision (a), the freeze may be removed prior to the protected consumer’s 18th birthday at the request of the representative of the protected consumer, or by the protected consumer if the protected consumer is 16 years of age or older at the time they make the request, under any of the following circumstances: (A) Upon the protected consumer’s removal from foster care. (B) Upon the protected consumer’s request, if the protected consumer is 16 years of age or older. (C) Upon a determination by the representative of the protected consumer that removal of the security freeze is in the best interest of the protected consumer. (3) A representative of the protected consumer may also remove the freeze pursuant to paragraph (2) at a time when the representative inquires with each of the three major credit reporting agencies pursuant to paragraph (1) of subdivision (a) of Section 10618.6 of the Welfare and Institutions Code. (k) A consumer credit reporting agency may develop procedures involving the use of telephone, mail, fax, the internet, or other electronic media to receive and process a request for a protected consumer’s security freeze to be placed or removed. (Amended by Stats. 2025, Ch. 67, Sec. 25. (AB 1170) Effective January 1, 2026.)
  65. 1785.11.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumers may request a security freeze on their credit report, and consumer credit reporting agencies must place, confirm, and remove the freeze within set deadlines and conditions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.2. (a) A consumer may elect to place a security freeze on his or her credit report by making a request in writing by mail to a consumer credit reporting agency. “Security freeze” means a notice placed in a consumer’s credit report, at the request of the consumer, and subject to certain exceptions, that prohibits the consumer credit reporting agency from releasing the consumer’s credit report or any information from it without the express authorization of the consumer. If a security freeze is in place, information from a consumer’s credit report may not be released to a third party without prior express authorization from the consumer. This subdivision does not prevent a consumer credit reporting agency from advising a third party that a security freeze is in effect with respect to the consumer’s credit report. (b) A consumer credit reporting agency shall place a security freeze on a consumer’s credit report no later than three business days after receiving a written request from the consumer. (c) The consumer credit reporting agency shall send a written confirmation of the security freeze to the consumer within 10 business days and shall provide the consumer with a unique personal identification number or password to be used by the consumer when providing authorization for the release of his or her credit for a specific party or period of time. (d) If the consumer wishes to allow his or her credit report to be accessed for a specific party or period of time while a freeze is in place, he or she shall contact the consumer credit reporting agency, request that the freeze be temporarily lifted, and provide the following: (1) Proper identification, as defined in subdivision (c) of Section 1785.15. (2) The unique personal identification number or password provided by the credit reporting agency pursuant to subdivision (c). (3) The proper information regarding the third party who is to receive the credit report or the time period for which the report shall be available to users of the credit report. (e) A consumer credit reporting agency that receives a request from a consumer to temporarily lift a freeze on a credit report pursuant to subdivision (d) shall comply with the request no later than three business days after receiving the request. (f) A consumer credit reporting agency may develop procedures involving the use of telephone, fax, the Internet, or other electronic media to receive and process a request from a consumer to temporarily lift a freeze on a credit report pursuant to subdivision (d) in an expedited manner. (g) A consumer credit reporting agency shall remove or temporarily lift a freeze placed on a consumer’s credit report only in the following cases: (1) Upon consumer request, pursuant to subdivision (d) or (j). (2) If the consumer’s credit report was frozen due to a material misrepresentation of fact by the consumer. If a consumer credit reporting agency intends to remove a freeze upon a consumer’s credit report pursuant to this paragraph, the consumer credit reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer’s credit report. (h) A third party who requests access to a consumer credit report in connection with an application for credit or any other use may treat the application as incomplete if a security freeze is in effect and the consumer does not allow his or her credit report to be accessed for that specific party or period of time. (i) If a consumer requests a security freeze, the consumer credit reporting agency shall disclose the process of placing and temporarily lifting a freeze and the process for allowing access to information from the consumer’s credit report for a specific party or period of time while the freeze is in place. (j) A security freeze shall remain in place until the consumer requests that the security freeze be removed. A consumer credit reporting agency shall remove a security freeze within three business days of receiving a request for removal from the consumer if the consumer provides both of the following: (1) Proper identification, as defined in subdivision (c) of Section 1785.15. (2) The unique personal identification number or password provided by the credit reporting agency pursuant to subdivision (c). (k) A consumer credit reporting agency shall require proper identification, as defined in subdivision (c) of Section 1785.15, of the person making a request to place or remove a security freeze. (l) The provisions of this section do not apply to the use of a consumer credit report by any of the following: (1) (A) (i) A person or entity with which the consumer has or had, prior to any assignment, an account or contract, including a demand deposit account, or to which the consumer issued a negotiable instrument, for the purpose of reviewing the account or collecting the financial obligation owing for the account, contract, or negotiable instrument. (ii) A subsidiary, affiliate, or agent of a person or entity described in clause (i), an assignee of a financial obligation owing by the consumer to such a person or entity, or a prospective assignee of a financial obligation owing by the consumer to such a person or entity in conjunction with the proposed purchase of the financial obligation, for the purpose of reviewing the account or collecting the financial obligation owing for the account, contract, or negotiable instrument. (B) For purposes of this paragraph, “reviewing the account” includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements. (2) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under subdivision (d) for purposes of facilitating the extension of credit or other permissible use. (3) Any state or local agency, law enforcement agency, trial court, or private collection agency acting pursuant to a court order, warrant, or subpoena. (4) A child support agency acting pursuant to Chapter 2 (commencing with Section 17400) of Division 17 of the Family Code or Title IV-D of the Social Security Act (42 U.S.C. et seq.). (5) The State Department of Health Care Services or its agents or assigns acting to investigate Medi-Cal fraud. (6) The Franchise Tax Board or its agents or assigns acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities. (7) The use of credit information for the purposes of prescreening as provided for by the federal Fair Credit Reporting Act. (8) Any person or entity administering a credit file monitoring subscription service to which the consumer has subscribed. (9) Any person or entity for the purpose of providing a consumer with a copy of his or her credit report upon the consumer’s request. (m) (1) Except as provided in paragraph (2), this title does not prevent a consumer credit reporting agency from charging a fee of no more than ten dollars ($10) to a consumer for the placement of each freeze, the removal of the freeze, the temporary lift of the freeze for a period of time, or the temporary lift of the freeze for a specific party, regarding access to a consumer credit report, except that a consumer credit reporting agency may not charge a fee to a victim of identity theft who has submitted a valid police report or valid Department of Motor Vehicles investigative report that alleges a violation of Section 530.5 of the Penal Code. (2) With respect to a consumer who is 65 years of age or older and who has provided identification confirming his or her age, a consumer credit reporting agency shall not charge a fee for the placement of an initial security freeze, but may charge a fee not to exceed five dollars ($5) for the removal of the freeze, the temporary lift of the freeze for a period of time, the temporary lift of the freeze for a specific party, or replacing the freeze. (n) Regardless of the existence of a security freeze, a consumer reporting agency may disclose public record information lawfully obtained by, or for, the consumer reporting agency from an open public record to the extent otherwise permitted by law. This subdivision does not prohibit a consumer reporting agency from electing to apply a valid security freeze to the entire contents of a credit report. (Amended by Stats. 2012, Ch. 645, Sec. 1. (AB 2374) Effective January 1, 2013.)
  66. 1785.11.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must send written confirmation when certain official information is changed during a security freeze, and must give a free credit report copy when a security alert expires and the consumer requests it.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.3. (a) If a security freeze is in place, a consumer credit reporting agency shall not change any of the following official information in a consumer credit report without sending a written confirmation of the change to the consumer within 30 days of the change being posted to the consumer’s file: name, date of birth, social security number, and address. Written confirmation is not required for technical modifications of a consumer’s official information, including name and street abbreviations, complete spellings, or transposition of numbers or letters. In the case of an address change, the written confirmation shall be sent to both the new address and to the former address. (b) If a consumer has placed a security alert, a consumer credit reporting agency shall provide the consumer, upon request, with a free copy of his or her credit report at the time the 90-day security alert period expires. (Added by Stats. 2001, Ch. 720, Sec. 3. Effective January 1, 2002. Operative January 1, 2003, by Sec. 8 of Ch. 720.)
  67. 1785.11.4.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    A credit reporting agency that only resells credit information and meets the stated conditions is exempt from Sections 1785.11.1 to 1785.11.3, but an agency acting under Section 1785.22 must honor security freezes placed by another agency.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.4. The provisions of Sections 1785.11.1, 1785.11.2, and 1785.11.3 do not apply to a consumer credit reporting agency that acts only as a reseller of credit information pursuant to Section 1785.22 by assembling and merging information contained in the data base of another consumer credit reporting agency or multiple consumer credit reporting agencies, and does not maintain a permanent data base of credit information from which new consumer credit reports are produced. However, a consumer credit reporting agency acting pursuant to Section 1785.22 shall honor any security freeze placed on a consumer credit report by another consumer credit reporting agency. (Added by Stats. 2001, Ch. 720, Sec. 4. Effective January 1, 2002.)
  68. 1785.11.6.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Some entities do not have to place a security alert or security freeze in a credit report.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.6. The following entities are not required to place in a credit report either a security alert, pursuant to Section 1785.11.1, or a security freeze, pursuant to Section 1785.11.2: (a) A check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payments. (b) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information regarding a consumer, to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution. (Amended by Stats. 2003, Ch. 907, Sec. 2. Effective January 1, 2004.)
  69. 1785.11.8.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    A consumer may ask a consumer credit reporting agency to remove the consumer’s name from lists used for credit card solicitations.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.8. A consumer may elect that his or her name shall be removed from any list that a consumer credit reporting agency furnishes for credit card solicitations, by notifying the consumer credit reporting agency, by telephone or in writing, pursuant to the notification system maintained by the consumer credit reporting agency pursuant to subdivision (d) of Section 1785.11. The election shall be effective for a minimum of two years, unless otherwise specified by the consumer. (Added by Stats. 2001, Ch. 354, Sec. 2. Effective January 1, 2002.)
  70. 1785.11.9.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    This section defines terms used for the protected consumer security freeze rules.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.11.9. For purposes of Sections 1785.11.10 and 1785.11.11, the following terms shall have the following meanings: (a) “Protected consumer” means an individual who is any of the following: (1) Under 16 years of age at the time a request for the placement of a security freeze is made. (2) An incapacitated person or a protected person for whom a guardian or conservator has been appointed. (3) Under the jurisdiction of a county welfare department or county probation department, has been placed in a foster care setting, and is under 16 years of age at the time a request for placement of a security freeze is made. (b) “Record” means a compilation of information that: (1) Identifies a protected consumer. (2) Was created by a consumer credit reporting agency solely for the purpose of complying with this section. (3) Is not otherwise authorized to be created or used to consider the protected consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. (c) (1) “Representative” means a person who provides to a consumer credit reporting agency sufficient proof of authority to act on behalf of a protected consumer. (2) For a protected consumer who has been placed in a foster care setting, “representative” means either of the following: (A) A county welfare department or its agent or designee. (B) A county probation department or its agent or designee. (3) For a protected consumer who has been placed in a foster care setting, “representative” does not mean a foster parent. (d) “Security freeze” means: (1) If a consumer credit reporting agency does not have a file pertaining to a protected consumer, a restriction that: (A) Is placed on the protected consumer’s record in accordance with this section. (B) Prohibits the consumer credit reporting agency from releasing the protected consumer’s record except as authorized in this section. (2) If a consumer credit reporting agency has a file pertaining to a protected consumer, a restriction that: (A) Is placed on the protected consumer’s consumer credit report in accordance with this section. (B) Prohibits the consumer credit reporting agency from releasing the protected consumer’s consumer credit report or any information derived from the protected consumer’s consumer credit report except as authorized in this section. (e) “Sufficient proof of authority” means documentation that shows that a representative has authority to act on behalf of a protected consumer in a financial matter. This documentation includes, but is not limited to: (1) A court order or relevant enabling document issued by a court. (2) A legally sufficient and valid power of attorney, or a durable power of attorney. (3) A written, notarized statement signed by a representative that expressly describes the authority of the representative to act on behalf of a protected consumer, including a temporary conservator or temporary guardian. (4) A written communication from a county welfare department or its agent or designee or a county probation department or its agent or designee certifying that the protected consumer is a foster youth under its jurisdiction. (f) “Sufficient proof of identification” means information or documentation that identifies a protected consumer or a representative of a protected consumer. This information or documentation includes, but is not limited to: (1) A social security number or a copy of a social security card issued by the Social Security Administration. (2) A certified copy or official copy of a birth certificate issued by the entity authorized to issue the birth certificate. (3) A copy of a driver’s license, an identification issued by the Department of Motor Vehicles, or any other government-issued identification. (4) A copy of a bill for telephone, sewer, septic tank, water, electric, oil, or natural gas services that shows a name and a home address. (5) A written communication from a county welfare department or its agent or designee or a county probation department or its agent or designee certifying that the protected consumer is a foster youth under its jurisdiction. (Added by Stats. 2016, Ch. 494, Sec. 1. (AB 1580) Effective January 1, 2017.)
  71. 1785.12.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    A consumer credit reporting agency may give certain contact and employment information to a governmental agency, but if a qualifying foster-care-related request shows a protected consumer has credit history, the agency must promptly block and not report credit-report information and must follow specified blocking rules.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.12. (a) Notwithstanding the provisions of Section 1785.11, a consumer credit reporting agency may furnish to a governmental agency a consumer’s name, address, former address, places of employment, or former places of employment. (b) If a request received pursuant to subdivision (a) of Section 10618.6 of the Welfare and Institutions Code indicates that the protected consumer who has been placed in a foster care setting has a consumer credit history, any information that appears on the protected consumer’s credit report shall be promptly blocked and not reported, in the same manner set forth in subdivision (k) of Section 1785.16 as if the agency had received a police report pursuant to Section 530.5 of the Penal Code. The credit reporting agency shall also comply with subdivisions (k) and (l) of Section 1785.16, regarding the protected consumer who has been placed in a foster care setting. (Amended by Stats. 2024, Ch. 846, Sec. 2. (AB 2935) Effective January 1, 2025.)
  72. 1785.13.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies are barred from reporting several categories of old or sensitive information, and must include some items in specified cases.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.13. (a) No consumer credit reporting agency shall make any consumer credit report containing any of the following items of information: (1) Bankruptcies that, from the date of the order for relief, antedate the report by more than 10 years. (2) Suits and judgments that, from the date of entry or renewal, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period. (3) Unlawful detainer actions, unless the lessor was the prevailing party. For purposes of this paragraph, the lessor shall be deemed to be the prevailing party only if (A) final judgment was awarded to the lessor (i) upon entry of the tenant’s default, (ii) upon the granting of the lessor’s motion for summary judgment, or (iii) following trial, or (B) the action was resolved by a written settlement agreement between the parties that states that the unlawful detainer action may be reported. In any other instance in which the action is resolved by settlement agreement, the lessor shall not be deemed to be the prevailing party for purposes of this paragraph. (4) Paid tax liens that, from the date of payment, antedate the report by more than seven years. (5) Accounts placed for collection or charged to profit and loss that antedate the report by more than seven years. (6) Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedate the report by more than seven years. These items of information shall no longer be reported if at any time it is learned that in the case of a conviction a full pardon has been granted, or in the case of an arrest, indictment, information, or misdemeanor complaint a conviction did not result. (7) Medical debt. (8) Any other adverse information that antedates the report by more than seven years. (b) The seven-year period specified in paragraphs (5) and (8) of subdivision (a) shall commence to run, with respect to any account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency that immediately preceded the collection activity, charge to profit and loss, or similar action. Where more than one of these actions is taken with respect to a particular account, the seven-year period specified in paragraphs (5) and (8) shall commence concurrently for all these actions on the date of the first of these actions. (c) Any consumer credit reporting agency that furnishes a consumer credit report containing information regarding any case involving a consumer arising under the bankruptcy provisions of Title 11 of the United States Code shall include an identification of the chapter of Title 11 of the United States Code under which the case arose if that can be ascertained from what was provided to the consumer credit reporting agency by the source of the information. (d) A consumer credit report shall not include any adverse information concerning a consumer antedating the report by more than 10 years or that otherwise is prohibited from being included in a consumer credit report. (e) If a consumer credit reporting agency is notified by a furnisher of credit information that an open-end credit account of the consumer has been closed by the consumer, any consumer credit report thereafter issued by the consumer credit reporting agency with respect to that consumer, and that includes information respecting that account, shall indicate the fact that the consumer has closed the account. For purposes of this subdivision, “open-end credit account” does not include any demand deposit account, such as a checking account, money market account, or share draft account. (f) Consumer credit reporting agencies shall not include medical information in their files on consumers or furnish medical information for employment, insurance, or credit purposes in a consumer credit report without the consent of the consumer. (g) A consumer credit reporting agency shall include in any consumer credit report information, if any, on the failure of the consumer to pay overdue child or spousal support, where the information either was provided to the consumer credit reporting agency pursuant to Section 4752 or has been provided to the consumer credit reporting agency and verified by another federal, state, or local governmental agency. (Amended by Stats. 2024, Ch. 520, Sec. 2. (SB 1061) Effective January 1, 2025.)
  73. 1785.135.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    A consumer credit reporting agency must not issue a consumer credit report about a lien or similar encumbrance if the document is accompanied by a court order striking or releasing it.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.135. No consumer credit reporting agency shall make any consumer credit report with respect to a document which acts as a lien or other encumbrance, including, but not limited to, a notice of lis pendens, but which has together with it a court order striking or releasing the lien or other encumbrance pursuant to Section 765.030 of the Code of Civil Procedure. (Added by Stats. 1998, Ch. 779, Sec. 1. Effective January 1, 1999.)
  74. 1785.14.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must use reasonable procedures, verify users before furnishing reports, keep certain records, protect report accuracy, and send written notices to relevant business users and information suppliers.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.14. (a) Every consumer credit reporting agency shall maintain reasonable procedures designed to avoid violations of Section 1785.13 and to limit furnishing of consumer credit reports to the purposes listed under Section 1785.11. These procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought and certify that the information will be used for no other purposes. From the effective date of this act the consumer credit reporting agency shall keep a record of the purposes as stated by the user. Every consumer credit reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by the prospective user prior to furnishing the user a consumer report. No consumer credit reporting agency may furnish a consumer credit report to any person unless the consumer credit reporting agency has reasonable grounds for believing that the consumer credit report will be used by the person for the purposes listed in Section 1785.11. A consumer credit reporting agency does not have reasonable grounds for believing that a consumer credit report will be used by the person for the purposes listed in Section 1785.11 unless all of the following requirements are met: (1) If the prospective user is a retail seller, as defined in Section 1802.3, and intends to issue credit to a consumer who appears in person on the basis of an application for credit submitted in person, the consumer credit reporting agency shall, with a reasonable degree of certainty, match at least three categories of identifying information within the file maintained by the consumer credit reporting agency on the consumer with the information provided to the consumer credit reporting agency by the retail seller. The categories of identifying information may include, but are not limited to, first and last name, month and date of birth, driver’s license number, place of employment, current residence address, previous residence address, or social security number. The categories of information shall not include mother’s maiden name. (2) If the prospective user is a retail seller, as defined in Section 1802.3, and intends to issue credit to a consumer who appears in person on the basis of an application for credit submitted in person, the retail seller certifies, in writing, to the consumer credit reporting agency that it instructs its employees and agents to inspect a photo identification of the consumer at the time the application was submitted in person. This paragraph does not apply to an application for credit submitted by mail. (3) If the prospective user intends to extend credit by mail pursuant to a solicitation by mail, the extension of credit shall be mailed to the same address as on the solicitation unless the prospective user verifies any address change by, among other methods, contacting the person to whom the extension of credit will be mailed. (b) Whenever a consumer credit reporting agency prepares a consumer credit report, it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. These reasonable procedures shall include, but not be limited to, permanent retention by the consumer credit reporting agency in the consumer’s file, or a separately individualized file, of that portion of the data in the file that is used by the consumer credit reporting agency to identify the individual consumer pursuant to paragraph (1) of subdivision (a). This permanently retained data shall be available for use in either a reinvestigation pursuant to subdivision (a) of Section 1785.16, an investigation where the consumer has filed a police report pursuant to subdivision (k) of Section 1785.16, or a restoration of a file involving the consumer. If the permanently retained identifying information is retained in a consumer’s file, it shall be clearly identified in the file in order for an individual who reviews the file to easily distinguish between the permanently stored identifying information and any other identifying information that may be a part of the file. This retention requirement shall not apply to data that is reported in error, that is obsolete, or that is found to be inaccurate through the results of a reinvestigation initiated by a consumer pursuant to subdivision (a) of Section 1785.16. (c) No consumer credit reporting agency may prohibit any user of any consumer credit report furnished by the consumer credit reporting agency from disclosing the contents of the consumer credit report to the consumer who is the subject of the report if adverse action may be taken by the user based in whole or in part on the consumer credit report. The act of disclosure to the consumer by the user of the contents of a consumer credit report shall not be a basis for liability of the consumer credit reporting agency or the user under Section 1785.31. (d) A consumer credit reporting agency shall provide a written notice to any person who regularly and in the ordinary course of business supplies information to the consumer credit reporting agency concerning any consumer or to whom a consumer credit report is provided by the consumer credit reporting agency. The notice shall specify the person’s obligations under this title. Copies of the appropriate code sections shall satisfy the requirement of this subdivision. (Amended by Stats. 1997, Ch. 768, Sec. 1. Effective January 1, 1998. Operative July 1, 1998, by Sec. 7 of Ch. 768.)
  75. 1785.15.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must provide consumers access to specified credit file information and related disclosures, and certain disclosures must be made within set time limits.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.15. (a) A consumer credit reporting agency shall supply files and information required under Section 1785.10 during normal business hours and on reasonable notice. In addition to the disclosure provided by this chapter and any disclosures received by the consumer, the consumer has the right to request and receive all of the following: (1) Either a decoded written version of the file or a written copy of the file, including all information in the file at the time of the request, with an explanation of any code used. (2) A credit score for the consumer, the key factors, and the related information, as defined in and required by Section 1785.15.1. (3) A record of all inquiries, by recipient, that result in the provision of information concerning the consumer in connection with a credit transaction not initiated by the consumer and that were received by the consumer credit reporting agency in the 12-month period immediately preceding the request for disclosure under this section. (4) The recipients, including end users specified in Section 1785.22, of any consumer credit report on the consumer which the consumer credit reporting agency has furnished: (A) For employment purposes within the two-year period preceding the request. (B) For any other purpose within the 12-month period preceding the request. Identification for purposes of this paragraph shall include the name of the recipient or, if applicable, the fictitious business name under which the recipient does business disclosed in full. If requested by the consumer, the identification shall also include the address of the recipient. (b) Files maintained on a consumer shall be disclosed promptly as follows: (1) In person, at the location where the consumer credit reporting agency maintains the trained personnel required by subdivision (d), if he or she appears in person and furnishes proper identification. (2) By mail, if the consumer makes a written request with proper identification for a copy of the file or a decoded written version of that file to be sent to the consumer at a specified address. A disclosure pursuant to this paragraph shall be deposited in the United States mail, postage prepaid, within five business days after the consumer’s written request for the disclosure is received by the consumer credit reporting agency. Consumer credit reporting agencies complying with requests for mailings under this section shall not be liable for disclosures to third parties caused by mishandling of mail after the mailings leave the consumer credit reporting agencies. (3) A summary of all information contained in files on a consumer and required to be provided by Section 1785.10 shall be provided by telephone, if the consumer has made a written request, with proper identification for telephone disclosure. (4) Information in a consumer’s file required to be provided in writing under this section may also be disclosed in another form if authorized by the consumer and if available from the consumer credit reporting agency. For this purpose, a consumer may request disclosure in person pursuant to Section 1785.10, by telephone upon disclosure of proper identification by the consumer, by electronic means if available from the consumer credit reporting agency, or by any other reasonable means that is available from the consumer credit reporting agency. (c) “Proper identification,” as used in subdivision (b) means that information generally deemed sufficient to identify a person. Only if the consumer is unable to reasonably identify himself or herself with the information described above may a consumer credit reporting agency require additional information concerning the consumer’s employment and personal or family history in order to verify his or her identity. (d) The consumer credit reporting agency shall provide trained personnel to explain to the consumer any information furnished him or her pursuant to Section 1785.10. (e) The consumer shall be permitted to be accompanied by one other person of his or her choosing, who shall furnish reasonable identification. A consumer credit reporting agency may require the consumer to furnish a written statement granting permission to the consumer credit reporting agency to discuss the consumer’s file in that person’s presence. (f) Any written disclosure by a consumer credit reporting agency to any consumer pursuant to this section shall include a written summary of all rights the consumer has under this title and, in the case of a consumer credit reporting agency that compiles and maintains consumer credit reports on a nationwide basis, a toll-free telephone number that the consumer can use to communicate with the consumer credit reporting agency. The written summary of rights required under this subdivision is sufficient if in substantially the following form: “You have a right to obtain a copy of your credit file from a consumer credit reporting agency. You may be charged a reasonable fee not exceeding eight dollars ($8). There is no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in your credit report within the preceding 60 days. The consumer credit reporting agency must provide someone to help you interpret the information in your credit file. You have a right to dispute inaccurate information by contacting the consumer credit reporting agency directly. However, neither you nor any credit repair company or credit service organization has the right to have accurate, current, and verifiable information removed from your credit report. Under the Federal Fair Credit Reporting Act, the consumer credit reporting agency must remove accurate, negative information from your report only if it is over seven years old. Bankruptcy information can be reported for 10 years. If you have notified a consumer credit reporting agency in writing that you dispute the accuracy of information in your file, the consumer credit reporting agency must then, within 30 business days, reinvestigate and modify or remove inaccurate information. The consumer credit reporting agency may not charge a fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the consumer credit reporting agency. If reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the consumer credit reporting agency to keep in your file, explaining why you think the record is inaccurate. The consumer credit reporting agency must include your statement about disputed information in a report it issues about you. You have a right to receive a record of all inquiries relating to a credit transaction initiated in 12 months preceding your request. This record shall include the recipients of any consumer credit report. You may request in writing that the information contained in your file not be provided to a third party for marketing purposes. You have a right to place a “security alert” in your credit report, which will warn anyone who receives information in your credit report that your identity may have been used without your consent. Recipients of your credit report are required to take reasonable steps, including contacting you at the telephone number you may provide with your security alert, to verify your identity prior to lending money, extending credit, or completing the purchase, lease, or rental of goods or services. The security alert may prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that taking advantage of this right may delay or interfere with the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or cellular phone or other new account, including an extension of credit at point of sale. If you place a security alert on your credit report, you have a right to obtain a free copy of your credit report at the time the 90-day security alert period expires. A security alert may be requested by calling the following toll-free telephone number: (Insert applicable toll-free telephone number). California consumers also have the right to obtain a “security freeze.” You have a right to place a “security freeze” on your credit report, which will prohibit a consumer credit reporting agency from releasing any information in your credit report without your express authorization. A security freeze must be requested in writing by mail. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or cellular phone or other new account, including an extension of credit at point of sale. When you place a security freeze on your credit report, you will be provided a personal identification number or password to use if you choose to remove the freeze on your credit report or authorize the release of your credit report for a specific party or period of time after the freeze is in place. To provide that authorization you must contact the consumer credit reporting agency and provide all of the following: (1) The personal identification number or password. (2) Proper identification to verify your identity. (3) The proper information regarding the third party who is to receive the credit report or the period of time for which the report shall be available to users of the credit report. A consumer credit reporting agency must authorize the release of your credit report no later than three business days after receiving the above information. A security freeze does not apply when you have an existing account and a copy of your report is requested by your existing creditor or its agents or affiliates for certain types of account review, collection, fraud control, or similar activities. If you are actively seeking credit, you should understand that the procedures involved in lifting a security freeze may slow your application for credit. You should plan ahead and lift a freeze, either completely if you are shopping around, or specifically for a certain creditor, before applying for new credit. A consumer credit reporting agency may not charge a fee to a consumer for placing or removing a security freeze if the consumer is a victim of identity theft and submits a copy of a valid police report or valid Department of Motor Vehicles investigative report. A person 65 years of age or older with proper identification shall not be charged a fee for placing an initial security freeze, but may be charged a fee of no more than five dollars ($5) for lifting, removing, or replacing a security freeze. All other consumers may be charged a fee of no more than ten dollars ($10) for each of these steps. You have a right to bring civil action against anyone, including a consumer credit reporting agency, who improperly obtains access to a file, knowingly or willfully misuses file data, or fails to correct inaccurate file data. If you are a victim of identity theft and provide to a consumer credit reporting agency a copy of a valid police report or a valid investigative report made by a Department of Motor Vehicles investigator with peace officer status describing your circumstances, the following shall apply: (1) You have a right to have any information you list on the report as allegedly fraudulent promptly blocked so that the information cannot be reported. The information will be unblocked only if (A) the information you provide is a material misrepresentation of the facts, (B) you agree that the information is blocked in error, or (C) you knowingly obtained possession of goods, services, or moneys as a result of the blocked transactions. If blocked information is unblocked, you will be promptly notified. (2) You have a right to receive, free of charge and upon request, one copy of your credit report each month for up to 12 consecutive months.” (Amended by Stats. 2012, Ch. 645, Sec. 2. (AB 2374) Effective January 1, 2013.)
  76. 1785.15.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    When a consumer asks for a credit score, the consumer credit reporting agency must provide a notice with listed score details. If the consumer asks for the credit file instead, the consumer must receive the file plus a statement that a score can be requested.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.15.1. (a) Upon the consumer’s request for a credit score, a consumer credit reporting agency shall supply to a consumer a notice which shall include the information described in paragraphs (1) to (5), inclusive, and a statement indicating that the information and credit scoring model may be different than the credit score that may be used by the lender. However, if the consumer requests the credit file and not the credit score, then the consumer shall receive the credit file and a statement that he or she may request and obtain a credit score. (1) The consumer’s current credit score or the consumer’s most recent credit score that was previously calculated by the credit reporting agency for a purpose related to the extension of credit. (2) The range of possible credit scores under the model used. (3) All the key factors that adversely affected the consumer’s credit score in the model used, the total number of which shall not exceed four. (4) The date the credit score was created. (5) The name of the person or entity that provided the credit score or credit file upon which the credit score was created. (b) For purposes of this act, “credit score” means a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default. The numerical value or the categorization derived from this analysis may also be referred to as a “risk predictor” or “risk score.” “Credit score” does not include any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including, but not limited to, the loan to value ratio, the amount of down payment, or a consumer’s financial assets. “Credit score” does not include other elements of the underwriting process or underwriting decision. (c) For the purposes of this section, “key factors” means all relevant elements or reasons adversely affecting the credit score for the particular individual listed in the order of their importance based on their effect on the credit score. (d) The information required by this section shall be provided in the same timeframe and manner as the information described in Section 1785.15. (e) This section shall not be construed to compel a consumer reporting agency to develop or disclose a score if the agency does not (1) distribute scores that are used in connection with residential real property loans, or (2) develop scores that assist credit providers in understanding a consumer’s general credit behavior and predicting his or her future credit behavior. (f) This section shall not be construed to require a consumer credit reporting agency that distributes credit scores developed by another person or entity to provide a further explanation of them, or to process a dispute arising pursuant to subdivision (a) of Section 1785.16, except that the consumer credit reporting agency shall provide the consumer with the name and address and website for contacting the person or entity who developed the score or developed the methodology of the score. This subdivision does not apply to a consumer credit reporting agency that develops or modifies scores that are developed by another person or entity. (g) This section shall not be construed to require a consumer reporting agency to maintain credit scores in its files. (Added by Stats. 2000, Ch. 978, Sec. 3. Effective January 1, 2001. Operative July 1, 2001, by Sec. 7 of Ch. 978.)
  77. 1785.15.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must give consumers certain credit score information when complying with Section 1785.15.1, and they may charge a reasonable fee for providing that information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.15.2. (a) In complying with Section 1785.15.1, a consumer credit reporting agency shall supply the consumer with a credit score that is derived from a credit scoring model that is widely distributed to users by that consumer credit reporting agency in connection with residential real property loans or with a credit score that assists the consumer in understanding the credit scoring assessment of his or her credit behavior and predictions about his or her future credit behavior, and a statement indicating that the information and credit scoring model may be different than that used by the lender. (b) A consumer credit reporting agency may charge a reasonable fee for providing the information required under Section 1785.15.1. (Added by Stats. 2000, Ch. 978, Sec. 4. Effective January 1, 2001. Operative July 1, 2001, by Sec. 7 of Ch. 978.)
  78. 1785.15.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must promptly give certain identity-theft victims a written rights statement and, when they receive the required report, provide up to 12 free file copies per year.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.15.3. (a) In addition to any other rights the consumer may have under this title, every consumer credit reporting agency, after being contacted by telephone, mail, or in person by any consumer who has reason to believe he or she may be a victim of identity theft, shall promptly provide to that consumer a statement, written in a clear and conspicuous manner, describing the statutory rights of victims of identity theft under this title. (b) Every consumer credit reporting agency shall, upon the receipt from a victim of identity theft of a police report prepared pursuant to Section 530.6 of the Penal Code, or a valid investigative report made by a Department of Motor Vehicles investigator with peace officer status regarding the public offenses described in Section 530.5 of the Penal Code, provide the victim, free of charge and upon request, with up to 12 copies of his or her file during a consecutive 12-month period, not to exceed one copy per month, following the date of the police report. Notwithstanding any other provision of this title, the maximum number of free reports a victim of identity theft is entitled to obtain under this title is 12 per year, as provided by this subdivision. (c) Subdivision (a) does not apply to a consumer reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer reporting agency or agencies and that does not maintain a permanent database of credit information from which new credit reports are produced. (d) The provisions of this section shall become effective July 1, 2003. (Added by Stats. 2002, Ch. 860, Sec. 2. Effective January 1, 2003. Section operative July 1, 2003, pursuant to subd. (d).)
  79. 1785.16.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies must investigate disputed file information, notify relevant parties, and correct, delete, or block information in specified cases.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.16. (a) If the completeness or accuracy of any item of information contained in his or her file is disputed by a consumer, and the dispute is conveyed directly to the consumer credit reporting agency by the consumer or user on behalf of the consumer, the consumer credit reporting agency shall within a reasonable period of time and without charge, reinvestigate and record the current status of the disputed information before the end of the 30-business-day period beginning on the date the agency receives notice of the dispute from the consumer or user, unless the consumer credit reporting agency has reasonable grounds to believe and determines that the dispute by the consumer is frivolous or irrelevant, including by reason of a failure of the consumer to provide sufficient information, as requested by the consumer credit reporting agency, to investigate the dispute. Unless the consumer credit reporting agency determines that the dispute is frivolous or irrelevant, before the end of the five-business-day period beginning on the date the consumer credit reporting agency receives notice of dispute under this section, the agency shall notify any person who provided information in dispute at the address and in the manner specified by the person. A consumer credit reporting agency may require that disputes by consumers be in writing. (b) In conducting that reinvestigation the consumer credit reporting agency shall review and consider all relevant information submitted by the consumer with respect to the disputed item of information. If the consumer credit reporting agency determines that the dispute is frivolous or irrelevant, it shall notify the consumer by mail or, if authorized by the consumer for that purpose, by any other means available to the consumer credit reporting agency, within five business days after that determination is made that it is terminating its reinvestigation of the item of information. In this notification, the consumer credit reporting agency shall state the specific reasons why it has determined that the consumer’s dispute is frivolous or irrelevant. If the disputed item of information is found to be inaccurate, missing, or can no longer be verified by the evidence submitted, the consumer credit reporting agency shall promptly add, correct, or delete that information from the consumer’s file. (c) No information may be reinserted in a consumer’s file after having been deleted pursuant to this section unless the person who furnished the information certifies that the information is accurate. If any information deleted from a consumer’s file is reinserted in the file, the consumer credit reporting agency shall promptly notify the consumer of the reinsertion in writing or, if authorized by the consumer for that purpose, by any other means available to the consumer credit reporting agency. As part of, or in addition to, this notice the consumer credit reporting agency shall, within five business days of reinserting the information, provide the consumer in writing (1) a statement that the disputed information has been reinserted, (2) a notice that the agency will provide to the consumer, within 15 days following a request, the name, address, and telephone number of any furnisher of information contacted or which contacted the consumer credit reporting agency in connection with the reinsertion, (3) the toll-free telephone number of the consumer credit reporting agency that the consumer can use to obtain this name, address, and telephone number, and (4) a notice that the consumer has the right to a reinvestigation of the information reinserted by the consumer credit reporting agency and to add a statement to his or her file disputing the accuracy or completeness of the information. (d) A consumer credit reporting agency shall provide written notice to the consumer of the results of any reinvestigation under this subdivision, within five days of completion of the reinvestigation. The notice shall include (1) a statement that the reinvestigation is completed, (2) a consumer credit report that is based on the consumer’s file as that file is revised as a result of the reinvestigation, (3) a description or indication of any changes made in the consumer credit report as a result of those revisions to the consumer’s file and a description of any changes made or sought by the consumer that were not made and an explanation why they were not made, (4) a notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the consumer credit reporting agency, including the name, business address, and telephone number of any furnisher of information contacted in connection with that information, (5) a notice that the consumer has the right to add a statement to the consumer’s file disputing the accuracy or completeness of the information, (6) a notice that the consumer has the right to request that the consumer credit reporting agency furnish notifications under subdivision (h), (7) a notice that the dispute will remain on file with the agency as long as the credit information is used, and (8) a statement about the details of the dispute will be furnished to any recipient as long as the credit information is retained in the agency’s data base. A consumer credit reporting agency shall provide the notice pursuant to this subdivision respecting the procedure used to determine the accuracy and completeness of information, not later than 15 days after receiving a request from the consumer. (e) The presence of information in the consumer’s file that contradicts the contention of the consumer shall not, in and of itself, constitute reasonable grounds for believing the dispute is frivolous or irrelevant. (f) If the consumer credit reporting agency determines that the dispute is frivolous or irrelevant, or if the reinvestigation does not resolve the dispute, or if the information is reinserted into the consumer’s file pursuant to subdivision (c), the consumer may file a brief statement setting forth the nature of the dispute. The consumer credit reporting agency may limit these statements to not more than 100 words if it provides the consumer with assistance in writing a clear summary of the dispute. (g) Whenever a statement of dispute is filed, the consumer credit reporting agency shall, in any subsequent consumer credit report containing the information in question, clearly note that the information is disputed by the consumer and shall include in the report either the consumer’s statement or a clear and accurate summary thereof. (h) Following the deletion of information from a consumer’s file pursuant to this section, or following the filing of a statement of dispute pursuant to subdivision (f), the consumer credit reporting agency, at the request of the consumer, shall furnish notification that the item of information has been deleted or that the item of information is disputed. In the case of disputed information, the notification shall include the statement or summary of the dispute filed pursuant to subdivision (f). This notification shall be furnished to any person designated by the consumer who has, within two years prior to the deletion or the filing of the dispute, received a consumer credit report concerning the consumer for employment purposes, or who has, within 12 months of the deletion or the filing of the dispute, received a consumer credit report concerning the consumer for any other purpose, if these consumer credit reports contained the deleted or disputed information. The consumer credit reporting agency shall clearly and conspicuously disclose to the consumer his or her rights to make a request for this notification. The disclosure shall be made at or prior to the time the information is deleted pursuant to this section or the consumer’s statement regarding the disputed information is received pursuant to subdivision (f). (i) A consumer credit reporting agency shall maintain reasonable procedures to prevent the reappearance in a consumer’s file and in consumer credit reports of information that has been deleted pursuant to this section and not reinserted pursuant to subdivision (c). (j) If the consumer’s dispute is resolved by deletion of the disputed information within three business days, beginning with the day the consumer credit reporting agency receives notice of the dispute in accordance with subdivision (a), and provided that verification thereof is provided to the consumer in writing within five business days following the deletion, then the consumer credit reporting agency shall be exempt from requirements for further action under subdivisions (d), (f), and (g). (k) If a consumer submits to a credit reporting agency a copy of a valid police report, or a valid investigative report made by a Department of Motor Vehicles investigator with peace officer status, filed pursuant to Section 530.5 of the Penal Code, the consumer credit reporting agency shall promptly and permanently block reporting any information that the consumer alleges appears on his or her credit report as a result of a violation of Section 530.5 of the Penal Code so that the information cannot be reported. The consumer credit reporting agency shall promptly notify the furnisher of the information that the information has been so blocked. Furnishers of information and consumer credit reporting agencies shall ensure that information is unblocked only upon a preponderance of the evidence establishing the facts required under paragraph (1), (2), or (3). The permanently blocked information shall be unblocked only if: (1) the information was blocked due to a material misrepresentation of fact by the consumer or fraud, or (2) the consumer agrees that the blocked information, or portions of the blocked information, were blocked in error, or (3) the consumer knowingly obtained possession of goods, services, or moneys as a result of the blocked transaction or transactions or the consumer should have known that he or she obtained possession of goods, services, or moneys as a result of the blocked transaction or transactions. If blocked information is unblocked pursuant to this subdivision, the consumer shall be promptly notified in the same manner as consumers are notified of the reinsertion of information pursuant to subdivision (c). The prior presence of the blocked information in the consumer credit reporting agency’s file on the consumer is not evidence of whether the consumer knew or should have known that he or she obtained possession of any goods, services, or moneys. For the purposes of this subdivision, fraud may be demonstrated by circumstantial evidence. In unblocking information pursuant to this subdivision, furnishers and consumer credit reporting agencies shall be subject to their respective requirements pursuant to this title regarding the completeness and accuracy of information. (l) In unblocking information as described in subdivision (k), a consumer reporting agency shall comply with all requirements of this section and 15 U.S.C. Sec. 1681i relating to reinvestigating disputed information. In addition, a consumer reporting agency shall accept the consumer’s version of the disputed information and correct or delete the disputed item when the consumer submits to the consumer reporting agency documentation obtained from the source of the item in dispute or from public records confirming that the report was inaccurate or incomplete, unless the consumer reporting agency, in the exercise of good faith and reasonable judgment, has substantial reason based on specific, verifiable facts to doubt the authenticity of the documentation submitted and notifies the consumer in writing of that decision, explaining its reasons for unblocking the information and setting forth the specific, verifiable facts on which the decision was based. (m) Any provision in a contract that prohibits the disclosure of a credit score by a person who makes or arranges loans or a consumer credit reporting agency is void. A lender shall not have liability under any contractual provision for disclosure of a credit score. (Amended by Stats. 2001, Ch. 354, Sec. 3. Effective January 1, 2002.)
  80. 1785.16.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A consumer credit reporting agency must delete certain credit-report inquiries when it verifies they were caused by identity theft.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.16.1. A consumer credit reporting agency shall delete from a consumer credit report inquiries for credit reports based upon credit requests that the consumer credit reporting agency verifies were initiated as the result of identity theft, as defined in Section 1798.92. (Added by Stats. 2001, Ch. 354, Sec. 4. Effective January 1, 2002.)
  81. 1785.16.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A creditor may not sell a consumer debt to a debt collector when the consumer is a victim of identity theft and the creditor has received the required notice.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.16.2. (a) No creditor may sell a consumer debt to a debt collector, as defined in 15 U.S.C. Sec. 1692a, if the consumer is a victim of identity theft, as defined in Section 1798.2, and with respect to that debt, the creditor has received notice pursuant to subdivision (k) of Section 1785.16 or paragraph (2) of subdivision (g) of Section 1788.18. (b) Subdivision (a) does not apply to a creditor’s sale of a debt to a subsidiary or affiliate of the creditor, if, with respect to that debt, the subsidiary or affiliate does not take any action to collect the debt. (c) For the purposes of this section, the requirement in 15 U.S.C. Sec. 1692a, that a person must use an instrumentality of interstate commerce or the mails in the collection of any debt to be considered a debt collector, does not apply. (Amended by Stats. 2016, Ch. 376, Sec. 2. (AB 1723) Effective January 1, 2017.)
  82. 1785.16.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    This section exempts certain consumer reporting agencies from subdivisions (k) and (l) of Section 1785.16.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.16.3. The provisions of subdivisions (k) and (l) of Section 1785.16 do not apply to a consumer reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer reporting agency or agencies, and that does not maintain a permanent database of credit information from which new credit reports are produced. (Added by Stats. 2002, Ch. 1029, Sec. 2. Effective September 28, 2002.)
  83. 1785.17.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

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    Consumer credit reporting agencies may charge some fees, but must provide certain disclosures and reports without charge in specified situations.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.17. (a) Except as otherwise provided, a consumer credit reporting agency may impose a reasonable charge upon a consumer, as follows: (1) For making a disclosure pursuant to Section 1785.10 or 1785.15, the consumer credit reporting agency may charge a fee not exceeding eight dollars ($8). (2) For furnishing a notification, statement, or summary, to any person pursuant to subdivision (h) of Section 1785.16, the consumer credit reporting agency may charge a fee not exceeding the charge that it would impose on each designated recipient for a consumer credit report, and the amount of the charge shall be indicated to the consumer before furnishing the notification, statement, or summary. (b) A consumer credit reporting agency shall make all disclosures pursuant to Sections 1785.10 and 1785.15 and furnish all consumer reports pursuant to Section 1785.16 without charge, if requested by the consumer within 60 days after receipt by the consumer of a notification of adverse action pursuant to Section 1785.20 or of a notification from a debt collection agency affiliated with the consumer credit reporting agency stating that the consumer’s credit rating may be or has been adversely affected. (c) A consumer credit reporting agency shall not impose any charge for (1) providing notice to a consumer required under Section 1785.16 or (2) notifying a person pursuant to subdivision (h) of Section 1785.16 of the deletion of any information which is found to be inaccurate or which can no longer be verified, if the consumer designates that person to the consumer credit reporting agency before the end of the 30-day period beginning on that date of notice under subdivision (d) of Section 1785.16. (Amended by Stats. 1992, Ch. 1194, Sec. 8. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)
  84. 1785.18.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    Consumer credit reporting agencies must identify the source and date of public record information in reports, keep certain employment-related public record information complete and up to date, and must not report age, marital status, race, color, or creed in employment reports.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.18. (a) Each consumer credit reporting agency which compiles and reports items of information concerning consumers which are matters of public record, shall specify in any report containing public record information the source from which that information was obtained, including the particular court, if there be such, and the date that the information was initially reported or publicized. (b) A consumer credit reporting agency which furnishes a consumer credit report for employment purposes, and which for that purpose compiles and reports items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer’s ability to obtain employment shall, in addition, maintain strict procedures designed to ensure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported. (c) No consumer credit reporting agency which furnishes a consumer credit report for employment purposes shall report information on the age, marital status, race, color, or creed of any consumer. (Amended by Stats. 1991, Ch. 971, Sec. 1.)
  85. 1785.19.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A consumer may sue for a civil penalty up to $2,500 against a person who improperly accesses, obtains, or uses file data.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.19. (a) In addition to any other remedy provided by law, a consumer may bring an action for a civil penalty, not to exceed two thousand five hundred dollars ($2,500), against any of the following: (1) A person who knowingly and willfully obtains access to a file other than as provided in Section 1785.11. (2) Any person who knowingly and willfully obtains data from a file other than as provided in Section 1785.11. (3) A person who uses the data received from a file in a manner contrary to an agreement with the consumer credit reporting agency. Such an action may also be brought by the person or entity responsible for the file accessed. This remedy is in addition to any other remedy which may exist. (b) If a plaintiff prevails in an action under subdivision (a) he or she shall be awarded the civil penalty, costs, and reasonable attorney fees. (Added by Stats. 1990, Ch. 842, Sec. 2.)
  86. 1785.19.5.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    Consumer credit reporting agencies must, on written request and with sufficient identification, create reasonable procedures to stop report or file information from being shared for marketing or unsolicited credit offers.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 2. Obligations of Consumer Credit Reporting Agencies [1785.10 - 1785.19.5] ( Chapter 2 added by Stats. 1975, Ch. 1271. ) ## 1785.19.5. Every consumer credit reporting agency, upon written request and the furnishing of sufficient identification to identify the consumer and the subject file, shall create reasonable procedures to prevent a consumer credit report or information from a consumer’s file from being provided to any third party for marketing purposes or for any offer of credit not requested by the consumer. This section does not apply to the use of information by a credit grantor for purposes related to an existing credit relationship. (Added by Stats. 1990, Ch. 842, Sec. 3.)
  87. 1785.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    This section says the act may be referred to as the Consumer Credit Reporting Agencies Act.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. ) ## 1785.2. This act may be referred to as the Consumer Credit Reporting Agencies Act. (Repealed and added by Stats. 1975, Ch. 1271.)
  88. 1785.20.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    When a person takes adverse action based on a consumer credit report, they must give the consumer written notice and certain report-source and rights information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.20. (a) If any person takes any adverse action with respect to any consumer, and the adverse action is based, in whole or in part, on any information contained in a consumer credit report, that person shall do all of the following: (1) Provide written notice of the adverse action to the consumer. (2) Provide the consumer with the name, address, and telephone number of the consumer credit reporting agency which furnished the report to the person. (3) Provide a statement that the credit grantor’s decision to take adverse action was based in whole or in part upon information contained in a consumer credit report. (4) Provide the consumer with a written notice of the following rights of the consumer: (A) The right of the consumer to obtain within 60 days a free copy of the consumer’s consumer credit report from the consumer credit reporting agency identified pursuant to paragraph (2) and from any other consumer credit reporting agency which compiles and maintains files on consumers on a nationwide basis. (B) The right of the consumer under Section 1785.16 to dispute the accuracy or completeness of any information in a consumer credit report furnished by the consumer credit reporting agency. (b) Whenever credit or insurance for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or in part because of information obtained from a person other than a consumer credit reporting agency bearing upon consumer’s credit worthiness or credit standing, the user of that information shall, within a reasonable period of time, and upon the consumer’s written request for the reasons for that adverse action received within 60 days after learning of the adverse action, disclose the nature and substance of the information to the consumer. The user of the information shall clearly and accurately disclose to the consumer his or her right to make such a written request at the time the adverse action is communicated to the consumer. (c) No person shall be held liable for any violation of this section if he or she shows by a preponderance of the evidence that at the time of the alleged violation he or she maintained reasonable procedures to assure compliance with this section. (d) Nothing in this chapter shall excuse compliance with the requirements of Section 1787.2. (Amended by Stats. 1992, Ch. 1194, Sec. 9. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)
  89. 1785.20.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A user of a consumer credit report for an unsolicited firm offer of credit must give the consumer a clear, conspicuous disclosure with the solicitation, unless the prequalifying-report exception applies. The consumer also has a right to stop use of file information for unsolicited credit transactions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.20.1. (a) Except as provided in subdivision (b), any person who uses a consumer credit report in connection with any credit transaction not initiated by the consumer and which consists of a firm offer of credit shall provide with any solicitation made to the consumer a clear and conspicuous statement as to all of the following: (1) Information contained in the consumer’s prequalifying report was used in connection with the transaction. (2) The consumer received the offer of credit, because the consumer satisfied the criteria for creditworthiness under which the consumer was selected for the offer. (3) Where applicable, the credit may not be extended if, after the consumer responds to the offer, the consumer does not meet the criteria used to select the consumer for the offer. (4) The consumer has a right to prohibit use of information contained in the consumer’s file with any consumer credit reporting agency in connection with any credit transaction that is not initiated by the consumer. The consumer may exercise this right by notifying the notification system or joint notification system established under subdivision (d) or (e) of Section 1785.11. (b) Subdivision (a) does not apply to any person using a prequalifying report if all of the following conditions are met: (1) The person using the prequalifying report is affiliated by common ownership or common corporate control with the person who procured the report. (2) The person who procures the prequalifying report from the consumer credit reporting agency clearly and conspicuously discloses to the consumer to whom the report relates, before the prequalifying report is provided to the person who uses the report, that the prequalifying report might be provided to, and used by, persons affiliated in the manner specified in paragraph (1) with the person that procured the report. (3) The consumer consents in writing to this provision and use of the prequalifying report. (c) No person shall be denied credit on the basis of the consumer’s refusal to provide consent pursuant to paragraph (3) of subdivision (b), unless that consent is necessary for the extension of credit, related to that transaction, by an affiliate. (Added by Stats. 1992, Ch. 1194, Sec. 9.5. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)
  90. 1785.20.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    Lenders in covered home-loan situations must give the consumer specified credit-score information and a notice, as soon as reasonably practicable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.20.2. Any person who makes or arranges loans and who uses a consumer credit score as defined in Section 1785.15.1 in connection with an application initiated or sought by a consumer for a closed end loan or establishment of an open end loan for a consumer purpose that is secured by one to four units of residential real property shall provide the following to the consumer as soon as reasonably practicable: (a) A copy of the information identified in subdivision (a) of Section 1785.15.1 that was obtained from a credit reporting agency or was developed and used by the user of the information. In addition to the information provided to it by a third party that provided the credit score or scores, a lender is only required to provide the notice contained in subdivision (d). (b) If a person who is subject to this section uses an automated underwriting system to underwrite a loan, that person may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer credit reporting agency. However, if a numerical credit score is generated by an automated underwriting system used by an enterprise, and that score is disclosed to the person, it shall be disclosed to the consumer consistent with subdivision (c). For purposes of this subdivision, the term “enterprise” shall have the meaning provided in paragraph (6) of Section 4502 of Title 12 of the United States Code. (c) A person subject to the provisions of this section who uses a credit score other than a credit score provided by a consumer reporting agency may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer credit reporting agency. (d) A copy of the following notice, which shall include the name, address, and telephone number of each credit bureau providing a credit score that was used: ## NOTICE TO THE HOME LOAN APPLICANT In connection with your application for a home loan, the lender must disclose to you the score that a credit bureau distributed to users and the lender used in connection with your home loan, and the key factors affecting your credit scores. The credit score is a computer generated summary calculated at the time of the request and based on information a credit bureau or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change. Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another. If you have questions about your credit score or the credit information that is furnished to you, contact the credit bureau at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The credit bureau plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application. If you have questions concerning the terms of the loan, contact the lender. (e) This section shall not require any person to do the following: (1) Explain the information provided pursuant to Section 1785.15.1. (2) Disclose any information other than a credit score or key factor, as defined in Section 1785.15.1. (3) Disclose any credit score or related information obtained by the user after a loan has closed. (4) Provide more than one disclosure per loan transaction. (5) Provide the disclosure required by this section when another person has made the disclosure to the consumer for that loan transaction. (f) Any person’s obligation pursuant to this section shall be limited solely to providing a copy of the information that was received from the consumer credit reporting agency. No person has liability under this section for the content of that information or for the omission of any information within the report provided by the consumer credit reporting agency. (g) As used in this section, the term “person” does not include an “enterprise” as defined in paragraph (6) of Section 4502 of Title 12 of the United States Code. (Added by Stats. 2000, Ch. 978, Sec. 6. Effective January 1, 2001. Operative July 1, 2001, by Sec. 7 of Ch. 978.)
  91. 1785.20.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

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    If a credit user spots a mismatch or has identity-theft notice, it must verify identity before approving credit, and creditors must give written notice of certain rights after a written identity-theft notice.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.20.3. (a) Any person who uses a consumer credit report in connection with the approval of credit based on an application for an extension of credit, and who discovers that the consumer’s first and last name, address, or social security number, on the credit application does not match, within a reasonable degree of certainty, the consumer’s first and last name, address or addresses, or social security number listed, if any, on the consumer credit report, shall take reasonable steps to verify the accuracy of the consumer’s first and last name, address, or social security number provided on the application to confirm that the extension of credit is not the result of identity theft, as defined in Section 1798.92. (b) Any person who uses a consumer credit report in connection with the approval of credit based on an application for an extension of credit, and who has received notification pursuant to subdivision (k) of Section 1785.16 that the applicant has been a victim of identity theft, as defined in Section 1798.92, may not lend money or extend credit without taking reasonable steps to verify the consumer’s identity and confirm that the application for an extension of credit is not the result of identity theft. (c) Any consumer who suffers damages as a result of a violation of this section by any person may bring an action in a court of appropriate jurisdiction against that person to recover actual damages, court costs, attorney’s fees, and punitive damages of not more than thirty thousand dollars ($30,000) for each violation, as the court deems proper. (d) As used in this section, “identity theft” has the meaning given in subdivision (b) of Section 1798.92. (e) For the purposes of this section, “extension of credit” does not include an increase in an existing open-end credit plan, as defined in Regulation Z of the Federal Reserve System (12 C.F.R. 226.2), or any change to or review of an existing credit account. (f) If a consumer provides initial written notice to a creditor that he or she is a victim of identity theft, as defined in subdivision (d) of Section 1798.92, the creditor shall provide written notice to the consumer of his or her rights under subdivision (k) of Section 1785.16. (g) The provisions of subdivisions (k) and (l) of Section 1785.16 do not apply to a consumer credit reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer credit reporting agency or the databases of multiple consumer credit reporting agencies, and does not maintain a permanent database of credit information from which new credit reports are produced. (h) This section does not apply if one of the addresses at issue is a United States Army or Air Force post office address or a United States Fleet post office address. (Amended by Stats. 2003, Ch. 41, Sec. 1. Effective January 1, 2004.)
  92. 1785.20.4.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

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    Housing providers and tenant screening entities must not use an alleged COVID-19 rental debt against a prospective tenant in housing decisions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.20.4. A housing provider, tenant screening company, or other entity that evaluates tenants on behalf of a housing provider shall not use an alleged COVID-19 rental debt, as defined in Section 1179.02 of the Code of Civil Procedure, as a negative factor for the purpose of evaluating a prospective housing application or as the basis for refusing to rent a dwelling unit to an otherwise qualified prospective tenant. (Amended by Stats. 2021, Ch. 5, Sec. 3. (AB 81) Effective February 23, 2021.)
  93. 1785.20.5.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    Before using a consumer credit report for employment, the user must give written notice and certain information to the person involved, and if the person wants a copy, the user must request one be provided.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.20.5. (a) Prior to requesting a consumer credit report for employment purposes, the user of the report shall provide written notice to the person involved. The notice shall inform the person that a report will be used, and shall identify the specific basis under subdivision (a) of Section 1024.5 of the Labor Code for use of the report. The notice shall also inform the person of the source of the report, and shall contain a box that the person may check off to receive a copy of the credit report. If the consumer indicates that he or she wishes to receive a copy of the report, the user shall request that a copy be provided to the person when the user requests its copy from the credit reporting agency. The report to the user and to the subject person shall be provided contemporaneously and at no charge to the subject person. (b) Whenever employment involving a consumer is denied either wholly or partly because of information contained in a consumer credit report from a consumer credit reporting agency, the user of the consumer credit report shall so advise the consumer against whom the adverse action has been taken and supply the name and address or addresses of the consumer credit reporting agency making the report. No person shall be held liable for any violation of this section if he or she shows by a preponderance of the evidence that, at the time of the alleged violation, he or she maintained reasonable procedures to assure compliance with this section. (Amended by Stats. 2011, Ch. 724, Sec. 1. (AB 22) Effective January 1, 2012.)
  94. 1785.20.6.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A person using a consumer credit report for a credit transaction must not treat listed medical debt as a negative factor in a credit decision.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.20.6. A person who uses a consumer credit report in connection with a credit transaction shall not use a medical debt listed on the report as a negative factor when making a credit decision. (Added by Stats. 2024, Ch. 520, Sec. 3. (SB 1061) Effective January 1, 2025.)
  95. 1785.21.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A user may notify a consumer about requesting an investigation, and the consumer reporting agency may require identification. If the request and identification are provided, the agency must review the disputed information and report its current status to both the user and consumer as quickly as possible.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.21. (a) A user in its discretion may notify the consumer that upon request the user may contact the consumer reporting agency and request that the consumer reporting agency investigate the current status of an item or items of information contained in the consumer report if the consumer disputes the completeness or accuracy of an item or items of information as provided to the user. (b) The consumer credit reporting agency may require identification from the user to insure the validity of the request and, in that regard, may require that the request be put in writing with proper identification. (c) In the event that any such request is made and identification given in the form or manner demanded by the consumer credit reporting agency, such agency shall review the file of the consumer and report the current status of the disputed information to the user and the consumer by the most expeditious means possible. (d) No user who furnishes information pursuant to this section shall be liable to any person for furnishing such information. (Added by Stats. 1976, Ch. 666.)
  96. 1785.22.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. )

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    A person reselling a consumer credit report must disclose the ultimate end user and permissible purposes, use reasonable procedures to limit resale to allowed purposes, and verify identities and certifications before resale.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats. 1975, Ch. 1271. ) ## 1785.22. (a) A person may not procure a consumer credit report for the purpose of reselling the report or any information therein unless the person discloses to the consumer credit reporting agency which issues the report the identity of the ultimate end user and each permissible purpose for which the report is furnished to the end user of the consumer credit report or information therein. (b) A person that procures a consumer credit report for the purpose of reselling the report or any information therein shall do all of the following: (1) Establish and comply with reasonable procedures designed to ensure that the consumer credit report or information is resold by the person only for a purpose for which the report may be furnished under this title. These procedures shall include all of the following: (A) Identification of each prospective user of the resold consumer credit report or information. (B) Certification of each purpose for which the consumer credit report or information will be used. (C) Certification that the consumer credit report or information will be used for no other purpose. (2) Before reselling the consumer credit report or information, the person shall make reasonable efforts to verify the identities and certifications made under paragraph (1). (Added by Stats. 1992, Ch. 1194, Sec. 10. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)
  97. 1785.25.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.5. Obligations of Furnishers of Credit Information [1785.25 - 1785.27] ( Chapter 3.5 added by Stats. 1992, Ch. 1194, Sec. 11. )

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    Furnishers of credit information must not report incomplete or inaccurate information, and must correct, update, or investigate disputed information within the stated time rules.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.5. Obligations of Furnishers of Credit Information [1785.25 - 1785.27] ( Chapter 3.5 added by Stats. 1992, Ch. 1194, Sec. 11. ) ## 1785.25. (a) A person shall not furnish information on a specific transaction or experience to any consumer credit reporting agency if the person knows or should know the information is incomplete or inaccurate. (b) A person who (1) in the ordinary course of business regularly and on a routine basis furnishes information to one or more consumer credit reporting agencies about the person’s own transactions or experiences with one or more consumers and (2) determines that information on a specific transaction or experience so provided to a consumer credit reporting agency is not complete or accurate, shall promptly notify the consumer credit reporting agency of that determination and provide to the consumer credit reporting agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the consumer credit reporting agency complete and accurate. (c) So long as the completeness or accuracy of any information on a specific transaction or experience furnished by any person to a consumer credit reporting agency is subject to a continuing dispute between the affected consumer and that person, the person may not furnish the information to any consumer credit reporting agency without also including a notice that the information is disputed by the consumer. (d) A person who regularly furnishes information to a consumer credit reporting agency regarding a consumer who has an open-end credit account with that person, and which is closed by the consumer, shall notify the consumer credit reporting agency of the closure of that account by the consumer, in the information regularly furnished for the period in which the account is closed. (e) A person who places a delinquent account for collection (internally or by referral to a third party), charges the delinquent account to profit or loss, or takes similar action, and subsequently furnishes information to a credit reporting agency regarding that action, shall include within the information furnished the approximate commencement date of the delinquency which gave rise to that action, unless that date was previously reported to the credit reporting agency. Nothing in this provision shall require that a delinquency must be reported to a credit reporting agency. (f) Upon receiving notice of a dispute noticed pursuant to subdivision (a) of Section 1785.16 with regard to the completeness or accuracy of any information provided to a consumer credit reporting agency, the person that provided the information shall (1) complete an investigation with respect to the disputed information and report to the consumer credit reporting agency the results of that investigation before the end of the 30-business-day period beginning on the date the consumer credit reporting agency receives the notice of dispute from the consumer in accordance with subdivision (a) of Section 1785.16 and (2) review relevant information submitted to it. (g) A person who furnishes information to a consumer credit reporting agency is liable for failure to comply with this section, unless the furnisher establishes by a preponderance of the evidence that, at the time of the failure to comply with this section, the furnisher maintained reasonable procedures to comply with those provisions. (Amended by Stats. 1993, Ch. 285, Sec. 8. Effective August 2, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)
  98. 1785.26.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.5. Obligations of Furnishers of Credit Information [1785.25 - 1785.27] ( Chapter 3.5 added by Stats. 1992, Ch. 1194, Sec. 11. )

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    A creditor may send negative credit information to a consumer credit reporting agency only after notifying the affected consumer, and the notice must be written and timely.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.5. Obligations of Furnishers of Credit Information [1785.25 - 1785.27] ( Chapter 3.5 added by Stats. 1992, Ch. 1194, Sec. 11. ) ## 1785.26. (a) As used in this section: (1) “Creditor” includes an agent or assignee of a creditor, including an agent engaged in administering or collecting the creditor’s accounts. (2) “Negative credit information” means information concerning the credit history of a consumer that, because of the consumer’s past delinquencies, late or irregular payment history, insolvency, or any form of default, would reasonably be expected to affect adversely the consumer’s ability to obtain or maintain credit. “Negative credit information” does not include information or credit histories arising from a nonconsumer transaction or any other credit transaction outside the scope of this title, nor does it include inquiries about a consumer’s credit record. (b) A creditor may submit negative credit information concerning a consumer to a consumer credit reporting agency, only if the creditor notifies the consumer affected. After providing this notice, a creditor may submit additional information to a credit reporting agency respecting the same transaction or extension of credit that gave rise to the original negative credit information without providing additional notice. (c) The notice shall be in writing and shall be delivered in person or mailed first class, postage prepaid, to the party’s last known address, prior to or within 30 days after the transmission of the negative credit information. (1) The notice may be part of any notice of default, billing statement, or other correspondence, and may be included as preprinted or standard form language in any of these from the creditor to the consumer. (2) The notice is sufficient if it is in substantially the following form: “As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.” (3) The notice may, in the creditor’s discretion, be more specific than the form given in paragraph (2). The notice may include, but shall not be limited to, particular information regarding an account or information respecting the approximate date on which the creditor submitted or intends to submit a negative credit report. (4) The giving of notice by a creditor as provided in this subdivision does not create any requirement for the creditor to actually submit negative credit information to a consumer credit reporting agency. However, this section shall not be construed to authorize the use of notice as provided in this subdivision in violation of the federal Fair Debt Collection Practices Act (15 U.S.C., Sec. 1692 et seq.). (d) A creditor is liable for failure to provide notice pursuant to this section, unless the creditor establishes, by a preponderance of the evidence, that at the time of that failure to give notice the creditor maintained reasonable procedures to comply with this section. (Amended by Stats. 2024, Ch. 80, Sec. 20. (SB 1525) Effective January 1, 2025.)
  99. 1785.27.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.5. Obligations of Furnishers of Credit Information [1785.25 - 1785.27] ( Chapter 3.5 added by Stats. 1992, Ch. 1194, Sec. 11. )

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    A person must not share medical-debt information with a consumer credit reporting agency.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.5. Obligations of Furnishers of Credit Information [1785.25 - 1785.27] ( Chapter 3.5 added by Stats. 1992, Ch. 1194, Sec. 11. ) ## 1785.27. (a) A person shall not furnish information regarding a medical debt to a consumer credit reporting agency. (b) A medical debt is void and unenforceable if a person knowingly violates this section by furnishing information regarding the medical debt to a consumer credit reporting agency. (c) (1) On or after July 1, 2025, it is unlawful to enter into a written contract creating a medical debt that does not include the following term: “A holder of this medical debt contract is prohibited by Section 1785.27 of the Civil Code from furnishing any information related to this debt to a consumer credit reporting agency. In addition to any other penalties allowed by law, if a person knowingly violates that section by furnishing information regarding this debt to a consumer credit reporting agency, the debt shall be void and unenforceable.” (2) A written contract entered into on or after July 1, 2025, that does not include the term described in paragraph (1) is void and unenforceable. (d) A violation of this section by a person holding a license or permit issued by the state shall be deemed to be a violation of the law governing that license or permit. (Amended by Stats. 2025, Ch. 200, Sec. 2. (AB 1521) Effective January 1, 2026.)
  100. 1785.28.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.6. Escrow Agent Rating Service [1785.28 - 1785.28.6] ( Chapter 3.6 added by Stats. 2013, Ch. 380, Sec. 1. )

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    Escrow agent rating services must follow listed consumer credit reporting rules and protect personally identifiable information from theft or misuse.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.6. Escrow Agent Rating Service [1785.28 - 1785.28.6] ( Chapter 3.6 added by Stats. 2013, Ch. 380, Sec. 1. ) ## 1785.28. (a) For the purposes of this section, the following definitions shall apply: (1) Escrow means any transaction in which one person, for the purpose of effecting the sale, transfer, encumbering, or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by that third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by that third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter. (2) An escrow agent is any of the following: (A) A natural person who performs escrow services for an entity licensed pursuant to the Escrow Law contained in Division 6 (commencing with Section 17000) of the Financial Code. (B) A natural person performing escrow services for a title insurer admitted pursuant to Article 3 (commencing with Section 699) of Chapter 1 of Part 2 of Division 1 of the Insurance Code or an underwritten title company licensed pursuant to Article 3.7 (commencing with Section 12389) of Chapter 1 of Part 6 of Division 2 of the Insurance Code. (C) A natural person performing escrow services for a controlled escrow company, as defined in Section 12340.6 of the Insurance Code. (D) A natural person licensed pursuant to Division 4 (commencing with Section 10000) of the Business and Professions Code, who performs escrow services, in accordance with Section 17006 of the Financial Code. (3) An escrow agent rating service is a person or entity that prepares a report, for compensation or in expectation of compensation, for use by a creditor in evaluating the capacity of an escrow agent to perform escrow services in connection with an extension of credit. An escrow agent rating service does not include either of the following: (A) A creditor or an employee of a creditor evaluating an escrow agent in connection with an extension of credit by that creditor. (B) An entity described in paragraph (2) for which a natural person performs escrow services as an employee or an independent contractor. (4) An escrow agent rating service shall be considered a reseller of credit information within the meaning of Section 1785.22 if it assembles and merges information contained in the database or databases maintained by a consumer credit reporting agency. (5) “Consumer” also means escrow agent. (b) An escrow agent rating service shall comply with and be subject to the following sections of this title applicable to a consumer credit reporting agency: (1) Subdivision (a) of Section 1785.10. (2) Subdivision (b) of Section 1785.10, limited to the obligation to advise a consumer of his or her right to a decoded written version of a file. (3) Subdivision (d) of Section 1785.10. (4) Paragraph (2) of subdivision (a) of Section 1785.11. (5) Section 1785.13. (6) Section 1785.14. (7) Paragraph (1) of subdivision (a) of Section 1785.15, limited to the right to request and receive a decoded written version of the file. (8) Section 1785.16. (9) Section 1785.18. (c) An escrow agent rating service that acts as a reseller of credit information as described in paragraph (4) of subdivision (a) shall comply with and be subject to Section 1785.22. (d) An escrow agent rating service shall establish policies and procedures reasonably intended to safeguard from theft or misuse any personally identifiable information it obtains from an escrow agent. (e) An escrow agent who suffers damages as a result of the failure of an escrow agent rating service to comply with subdivision (b), (c), or (d) may bring an action in a court of competent jurisdiction pursuant to Section 1785.31 of the Civil Code. (f) If an escrow agent rating service is also a consumer credit reporting agency as defined in subdivision (d) of Section 1785.3, nothing in this section shall be construed to suggest that an escrow agent reporting service that is also a consumer credit reporting agency is not otherwise required to comply with other provisions of this title applicable to consumer credit reporting agencies. (g) Nothing in this section shall be construed to authorize a person, who was not otherwise legally authorized to perform escrow services prior to the effective date of this section, to legally perform escrow services. (h) Nothing in this section is intended to alter the provisions of Section 17420 of the Financial Code, including the legal authority of an escrow agent to compensate an escrow agent rating service for a report prepared pursuant to paragraph (3) of subdivision (a). (Added by Stats. 2013, Ch. 380, Sec. 1. (AB 1169) Effective January 1, 2014. Repealed as of January 1, 2027, pursuant to Section 1785.28.6.)
  101. 1785.28.6.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.6. Escrow Agent Rating Service [1785.28 - 1785.28.6] ( Chapter 3.6 added by Stats. 2013, Ch. 380, Sec. 1. )

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    This section says Chapter 3.6 stays in effect only until January 1, 2027, and is repealed on that date.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 3.6. Escrow Agent Rating Service [1785.28 - 1785.28.6] ( Chapter 3.6 added by Stats. 2013, Ch. 380, Sec. 1. ) ## 1785.28.6. This chapter shall remain in effect only until January 1, 2027, and as of that date is repealed. (Amended by Stats. 2021, Ch. 105, Sec. 1. (SB 360) Effective January 1, 2022. Repealed as of January 1, 2027, by its own provisions. Note: Repeal affects Chapter 3.6, commencing with Section 1785.28.)
  102. 1785.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. )

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    This section defines key terms used in the consumer credit reporting title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. ) ## 1785.3. The following terms as used in this title have the meaning expressed in this section: (a) “Adverse action” means a denial or revocation of credit, a change in the terms of an existing credit arrangement which is adverse to the interests of the consumer, or a refusal to grant credit in substantially the amount or on substantially the terms requested. “Adverse action” includes all of the following: (1) Any denial of, increase in any charge for, or reduction in the amount of, insurance for personal, family, or household purposes made in connection with the underwriting of insurance. (2) Any denial of employment or any other decision made for employment purposes which adversely affects any current or prospective employee. (3) Any action taken, or determination made, with respect to a consumer (A) for an application for an extension of credit, or an application for the hiring of a dwelling unit, and (B) that is adverse to the interests of the consumer. “Adverse action” does not include (A) a refusal to extend additional credit to a consumer under an existing credit arrangement if (i) the applicant is delinquent or otherwise in default under that credit arrangement or (ii) the additional credit would exceed a credit limit previously established for the consumer or (B) a refusal or failure to authorize an account transaction at a point of sale. (b) “Consumer” means a natural individual. (c) “Consumer credit report” means any written, oral, or other communication of any information by a consumer credit reporting agency bearing on a consumer’s credit worthiness, credit standing, or credit capacity, which is used or is expected to be used, or collected in whole or in part, for the purpose of serving as a factor in establishing the consumer’s eligibility for: (1) credit to be used primarily for personal, family, or household purposes, or (2) employment purposes, or (3) hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, or (4) other purposes authorized in Section 1785.11. The term does not include (1) any report containing information solely as to transactions or experiences between the consumer and the person making the report, (2) any communication of that information or information from a credit application by a consumer that is internal within the organization that is the person making the report or that is made to an entity owned by, or affiliated by corporate control with, that person; provided that the consumer is informed by means of a clear and conspicuous written disclosure that information contained in the credit application may be provided to these persons; however, where a credit application is taken by telephone, disclosure shall initially be given orally at the time the application is taken, and a clear and conspicuous written disclosure shall be made to the consumer in the first written communication to that consumer after the application is taken, (3) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device, (4) any report by a person conveying a decision whether to make a specific extension of credit directly or indirectly to a consumer in response to a request by a third party, if the third party advises the consumer of the name and address of the person to whom the request was made and the person makes the disclosures to the consumer required under Section 1785.20, (5) any report containing information solely on a consumer’s character, general reputation, personal characteristics, or mode of living which is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on, or others with whom the consumer is acquainted or who may have knowledge concerning those items of information, (6) any communication about a consumer in connection with a credit transaction which is not initiated by the consumer, between persons who are affiliated (as defined in Section 150 of the Corporations Code) by common ownership or common corporate control (as defined by Section 160 of the Corporations Code), if either of those persons has complied with paragraph (2) of subdivision (b) of Section 1785.20.1 with respect to a prequalifying report from which the information communicated is taken and provided the consumer has consented to the provision and use of the prequalifying report in writing, or (7) any consumer credit report furnished for use in connection with a transaction which consists of an extension of credit to be used solely for a commercial purpose. (d) “Consumer credit reporting agency” means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the business of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer credit reports to third parties, but does not include any governmental agency whose records are maintained primarily for traffic safety, law enforcement, or licensing purposes. (e) “Credit transaction that is not initiated by the consumer” does not include the use of a consumer credit report by an assignee for collection or by a person with which the consumer has an account for purposes of (1) reviewing the account or (2) collecting the account. For purposes of this subdivision, “reviewing the account” includes activities related to account maintenance and monitoring, credit line increases, and account upgrades and enhancements. (f) “Employment purposes,” when used in connection with a consumer credit report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee. (g) “File,” when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer credit reporting agency, regardless of how the information is stored. (h) “Firm offer of credit” means any offer of credit to a consumer that will be honored if, based on information in a consumer credit report on the consumer and other information bearing on the creditworthiness of the consumer, the consumer is determined to meet the criteria used to select the consumer for the offer and the consumer is able to provide any real property collateral specified in the offer. For purposes of this subdivision, the phrase “other information bearing on the creditworthiness of the consumer” means information that the person making the offer is permitted to consider pursuant to any rule, regulation, or formal written policy statement relating to the federal Fair Credit Reporting Act, as amended (15 U.S.C. Sec. 1681 et seq.), promulgated by the Federal Trade Commission or any federal bank regulatory agency. (i) “Item of information” means any of one or more informative entries in a credit report which causes a creditor to deny credit to an applicant or increase the cost of credit to an applicant or deny an applicant a checking account with a bank or other financial institution. (j) (1) “Medical debt” means a debt owed by a consumer to a person whose primary business is providing medical services, products, or devices, or to the person’s agent or assignee, for the provision of medical services, products, or devices. Medical debt includes, but is not limited to, medical bills that are not past due or that have been paid. (2) For the purposes of this subdivision, “medical service, product, or device” does not include cosmetic surgery, as defined in Section 1367.63 of the Health and Safety Code, and includes, but is not limited to, all of the following: (A) Any service, drug, medication, product, or device sold, offered, or provided to a patient by either of the following: (i) A person or facility licensed under Division 2 (commencing with Section 1200) of the Health and Safety Code, except for Chapters 3.35 (commencing with Section 1596.60) to 3.65 (commencing with Section 1597.70), inclusive, of that division. (ii) A person licensed under Division 2 (commencing with Section 500) of the Business and Professions Code, except for Chapter 11 (commencing with Section 4800) of that division. (B) Initial or subsequent reconstructive surgeries, as defined in Section 1367.63 of the Health and Safety Code, and followup care deemed necessary by the attending physician and surgeon. (C) Initial or subsequent prosthetic devices, as defined in Section 1367.635 of the Health and Safety Code, and followup care deemed necessary by the attending physician and surgeon. (D) A mastectomy, as defined in Section 1367.635 of the Health and Safety Code. (k) “Person” means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity. (l) “Prequalifying report” means a report containing the limited information permitted under paragraph (2) of subdivision (b) of Section 1785.11. (m) “State or local child support enforcement agency” means the Department of Child Support Services or local child support agency acting pursuant to Division 17 (commencing with Section 17000) of the Family Code to establish, enforce or modify child support obligations, and any state or local agency or official that succeeds to these responsibilities under a successor statute. (Amended by Stats. 2024, Ch. 520, Sec. 1. (SB 1061) Effective January 1, 2025.)
  103. 1785.30.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    After a credit reporting reinvestigation, the consumer can ask for corrections, and the information provider must acknowledge the demand within 30 days.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. ) ## 1785.30. Upon notification of the results of a consumer credit reporting agency’s reinvestigation pursuant to Section 1785.16, a consumer may make a written demand on any person furnishing information to the consumer credit reporting agency to correct any information that the consumer believes to be inaccurate. The person upon whom the written demand is made shall acknowledge the demand within 30 days. The consumer may require the consumer credit reporting agency to indicate on any subsequent reports issued during the dispute that the item or items of information are in dispute. If upon investigation the information is found to be inaccurate or incorrect, the consumer may require the consumer credit reporting agency to delete or correct the item or items of information within a reasonable time. If within 90 days the consumer credit reporting agency does not receive any information from the person requested to furnish the same or any communication relative to this information from this person, the consumer credit reporting agency shall delete the information from the report. (Amended by Stats. 2004, Ch. 183, Sec. 31. Effective January 1, 2005.)
  104. 1785.31.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    Consumers harmed by a violation of this title may sue for damages, and injured or threatened consumers may seek injunctions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. ) ## 1785.31. (a) Any consumer who suffers damages as a result of a violation of this title by any person may bring an action in a court of appropriate jurisdiction against that person to recover the following: (1) In the case of a negligent violation, actual damages, including court costs, loss of wages, attorney’s fees and, when applicable, pain and suffering. (2) In the case of a willful violation: (A) Actual damages as set forth in paragraph (1) above: (B) Punitive damages of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000) for each violation as the court deems proper; (C) Any other relief that the court deems proper. (3) In the case of liability of a natural person for obtaining a consumer credit report under false pretenses or knowingly without a permissible purpose, an award of actual damages pursuant to paragraph (1) or subparagraph (A) of paragraph (2) shall be in an amount of not less than two thousand five hundred dollars ($2,500). (b) Injunctive relief shall be available to any consumer aggrieved by a violation or a threatened violation of this title whether or not the consumer seeks any other remedy under this section. (c) Notwithstanding any other provision of this section, any person who willfully violates any requirement imposed under this title may be liable for punitive damages in the case of a class action, in an amount that the court may allow. In determining the amount of award in any class action, the court shall consider among relevant factors the amount of any actual damages awarded, the frequency of the violations, the resources of the violator and the number of persons adversely affected. (d) Except as provided in subdivision (e), the prevailing plaintiffs in any action commenced under this section shall be entitled to recover court costs and reasonable attorney’s fees. (e) If a plaintiff brings an action pursuant to this section against a debt collector, as defined in subdivision (c) of Section 1788.2, and the basis for the action is related to the collection of a debt, whether issues relating to the debt collection are raised in the same or another proceeding, the debt collector shall be entitled to recover reasonable attorney’s fees upon a finding by the court that the action was not brought in good faith. (f) If a plaintiff only seeks and obtains injunctive relief to compel compliance with this title, court costs and attorney’s fees shall be awarded pursuant to Section 1021.5 of the Code of Civil Procedure. (g) Nothing in this section is intended to affect remedies available under Section 128.5 of the Code of Civil Procedure. (Amended by Stats. 1999, Ch. 836, Sec. 1. Effective January 1, 2000.)
  105. 1785.32.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A consumer generally may not sue for defamation, invasion of privacy, or negligence over certain information reporting, except for false information furnished with malice or a willful intent to injure.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. ) ## 1785.32. Except as provided in Section 1785.31, no consumer may bring any action or proceeding in the nature of defamation, invasion of privacy or negligence with respect to the reporting of information against any consumer reporting agency, any user of information, or any person who furnishes information to a consumer reporting agency, based on information disclosed pursuant to Section 1785.10, 1785.15 or 1785.20 of this title, except as to false information furnished with malice or willful intent to injure such consumer. (Added by renumbering Section 1785.31 by Stats. 1976, Ch. 666.)
  106. 1785.33.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A plaintiff may sue to enforce liability under this chapter within 2 years after learning, or when they should have learned, of the violation, subject to a 7-year outer limit; a special 2-year period applies after discovery of certain material, willful misrepresentations.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. ) ## 1785.33. An action to enforce any liability created under this chapter may be brought in any appropriate court of competent jurisdiction within two years from the date the plaintiff knew of, or should have known of, the violation of this title, but not more than seven years from the earliest date on which liability could have arisen, except that where a defendant has materially and willfully misrepresented any information required under this chapter to be disclosed to a consumer and the information so misrepresented is material to the establishment of the defendant’s liability to the consumer under this chapter, the action may be brought at any time within two years after the discovery by the consumer of the misrepresentation. (Amended by Stats. 1997, Ch. 768, Sec. 5. Effective January 1, 1998. Operative July 1, 1998, by Sec. 7 of Ch. 768.)
  107. 1785.34.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A consumer credit reporting agency or user of information cannot be sued under Section 1785.31 for the same act or omission while a related federal action under 15 U.S.C. 1681n or 1681o is pending; a final judgment in that federal action also bars a later action under this chapter based on the same act or omission.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. ) ## 1785.34. (a) Any consumer credit reporting agency or user of information against whom an action brought pursuant to Section 1681n or 1681o of Title 15 of the United States Code is pending shall not be subject to suit for the same act or omission under Section 1785.31. (b) The entry of a final judgment against a consumer credit reporting agency or user of information in an action brought pursuant to the provisions of Section 1681n or 1681o of Title 15 of the United States Code shall be a bar to the maintenance of any action based on the same act or omission which might be brought under this chapter. (Added by renumbering Section 1785.33 by Stats. 1976, Ch. 666.)
  108. 1785.35.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    This section says the title does not apply to certain consumer credit reports and to certain persons whose records are kept mainly to report public records about land and land titles.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. ) ## 1785.35. This title does not apply to any consumer credit report that by its terms is limited to disclosures from public records relating to land and land titles and does not apply to any person whose records and files are maintained for the primary purpose of reporting those portions of the public records that impart constructive notice under the law of matters relating to land and land titles. (Amended by Stats. 1999, Ch. 836, Sec. 2. Effective January 1, 2000.)
  109. 1785.36.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    A waiver of this title is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 4. Remedies [1785.30 - 1785.36] ( Chapter 4 added by Stats. 1975, Ch. 1271. ) ## 1785.36. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 8. Effective January 1, 2003.)
  110. 1785.4.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    This title does not apply to licensed Chapter 11 persons or their employees, unless the person is employed directly by a consumer credit reporting agency.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. ) ## 1785.4. Nothing in this title shall apply to any person licensed pursuant to the provisions of Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code, or to any employee of such person, unless such person is employed directly by a consumer credit reporting agency. (Repealed and added by Stats. 1975, Ch. 1271.)
  111. 1785.41.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. )

    Verify source ↗

    Consumer credit reporting is subject to the Consumer Credit Reporting Agencies Act; commercial credit reports are not.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. ) ## 1785.41. Consumer credit reporting is subject to the regulations of the Consumer Credit Reporting Agencies Act. Commercial credit reports, which differ significantly, are not subject to that act. The circumstances, business practices, and reports themselves differ sufficiently to make it impractical to include commercial credit reports under the Consumer Credit Reporting Agencies Act. (Added by Stats. 1992, Ch. 101, Sec. 1. Effective January 1, 1993.)
  112. 1785.42.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. )

    Verify source ↗

    This section defines “commercial credit report,” “commercial credit reporting agency,” and “subject.”

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. ) ## 1785.42. (a) “Commercial credit report” means any report provided to a commercial enterprise for a legitimate business purpose, relating to the financial status or payment habits of a commercial enterprise which is the subject of the report. It does not include a report subject to Title 1.6 (commencing with Section 1785.1), Title 1.6A (commencing with Section 1786), or a report prepared for commercial insurance underwriting, claims, or auditing purposes. The term does not include (1) any report containing information related to transactions or experiences between the subject and the person making the report; (2) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or (3) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to the subject conveys its decision with respect to that request. (b) “Commercial credit reporting agency” means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, provides commercial credit reports to third parties. (c) “Subject” means the commercial enterprise about which a commercial credit report has been compiled. (Amended by Stats. 1993, Ch. 285, Sec. 9. Effective August 2, 1993.)
  113. 1785.43.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. )

    Verify source ↗

    Commercial credit reporting agencies may keep source identities private, but must give a printed copy of a report on request and must respond to a written dispute statement within 30 days.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. ) ## 1785.43. (a) Commercial credit reporting agencies may protect the identity of sources of information to be used in commercial credit reports. (b) Upon the request of a representative of the subject of a report, the commercial credit reporting agency shall provide one printed copy of the subject’s commercial credit report in a format routinely made available to third parties, at a cost no greater than the cost usually charged to third parties. (c) In the event that the subject of a commercial credit report believes the report contains an inaccurate statement of fact, a representative of the subject of the report may, within 30 days of receipt of the report pursuant to subdivision (b), file with the commercial credit reporting agency a written summary statement of not more than 50 words identifying the particular statement of fact that is disputed, and indicating the nature of the disagreement with the statement in the report. Within 30 days of receipt of a subject’s summary statement of disagreement, the commercial credit reporting agency shall either delete the disputed item of information from the report, or include in the report an indication that the subject’s summary statement of disagreement will be provided upon request. (Added by Stats. 1992, Ch. 101, Sec. 1. Effective January 1, 1993.)
  114. 1785.44.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. )

    Verify source ↗

    A waiver of this title’s provisions is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.61. COMMERCIAL CREDIT REPORTS [1785.41 - 1785.44] ( Title 1.61 added by Stats. 1992, Ch. 101, Sec. 1. ) ## 1785.44. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 9. Effective January 1, 2003.)
  115. 1785.5.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    Some people who regularly assemble, evaluate, or share checking-account experience information for fees or on a cooperative nonprofit basis are subject to the same laws as consumer credit reporting agencies, except for a limited carve-out tied to Section 1785.10 and only the address and telephone number.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. ) ## 1785.5. Any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling, evaluating, or disseminating information on the checking account experiences of consumer customers of banks or other financial institutions is, with the exception of compliance with the requirements of Section 1785.10, subdivisions (c), (d), and (e), only with regard to the provision of the address and telephone number, subject to the same laws which govern consumer credit reporting agencies. (Amended by Stats. 2001, Ch. 236, Sec. 1. Effective January 1, 2002. Operative January 1, 2003, by Sec. 3 of Ch. 236.)
  116. 1785.6.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. )

    Verify source ↗

    Notices and disclosures under this title only have to be made to consumers with a mailing address in California.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and added by Stats. 1975, Ch. 1271. ) ## CHAPTER 1. General Provisions [1785.1 - 1785.6] ( Chapter 1 added by Stats. 1975, Ch. 1271. ) ## 1785.6. The notices and disclosures to consumers provided for in this title shall be required to be made only to those consumers who have a mailing address in California. (Added by Stats. 1993, Ch. 285, Sec. 2. Effective August 2, 1993.)
  117. 1786.10.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency must let a consumer inspect their file on request and proper identification, and must disclose certain report recipients and adverse-check details.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.10. (a) Every investigative consumer reporting agency shall, upon request and proper identification of any consumer, allow the consumer to visually inspect all files maintained regarding the consumer at the time of the request. (b) (1) All items of information shall be available for inspection, except that the sources of information, other than public records and records from databases available for sale, acquired solely for use in preparing an investigative consumer report and actually used for no other purpose need not be disclosed. However, if an action is brought under this title, those sources shall be available to the consumer under appropriate discovery procedures in the court in which the action is brought. (2) This title shall not be interpreted to mean that investigative consumer reporting agencies are required to divulge to consumers the sources of investigative consumer reports, except in appropriate discovery procedures as outlined in this title. (c) The investigative consumer reporting agency shall also identify the recipients of any investigative consumer report on the consumer that the investigative consumer reporting agency has furnished for either of the following purposes: (1) For employment or insurance purposes within the three-year period preceding the request. (2) For any other purpose within the three-year period preceding the request. (d) The identification of a recipient under subdivision (c) shall include the name of the recipient or, if applicable, the trade name (written in full) under which the recipient conducts business and, upon request of the consumer, the address and telephone number of the recipient. (e) The investigative consumer reporting agency shall also disclose the dates, original payees, and amounts of any checks or charges upon which is based any adverse characterization of the consumer, included in the file at the time of the disclosure. (Amended by Stats. 2006, Ch. 538, Sec. 45. Effective January 1, 2007.)
  118. 1786.11.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency must give the consumer a copy of the report, if requested and with proper identification, for at least two years after giving the report to someone else.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.11. Every investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer shall make a copy of that report available, upon request and proper identification, to the consumer for at least two years after the date that the report is provided to the other person. (Amended by Stats. 2002, Ch. 1029, Sec. 3. Effective September 28, 2002.)
  119. 1786.12.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Investigative consumer reporting agencies may furnish reports only in specific listed situations, and they may not provide certain reports without required certification or consumer consent.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.12. An investigative consumer reporting agency shall only furnish an investigative consumer report under the following circumstances: (a) In response to the order of a court having jurisdiction to issue the order. (b) In compliance with a lawful subpoena issued by a court of competent jurisdiction. (c) In accordance with the written instructions of the consumer to whom it relates. (d) To a person that it has reason to believe: (1) Intends to use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance or the rate for any insurance; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider the applicant’s financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcement of the order involves the consumer; or (5) Intends to use the information in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (e) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency has received the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report. (f) An investigative consumer reporting agency shall not furnish an investigative consumer report to a person described in subdivision (d) if that report contains medical information about a consumer, unless the consumer consents to the furnishing of the report. (Amended by Stats. 1998, Ch. 988, Sec. 4. Effective January 1, 1999.)
  120. 1786.14.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency may give certain consumer identification and employment information to a governmental agency, despite Section 1786.12.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.14. Notwithstanding the provisions of Section 1786.12 an investigative consumer reporting agency may furnish to a governmental agency a consumer’s name, address, former address, places of employment, or former places of employment. (Added by Stats. 1975, Ch. 1272.)
  121. 1786.16.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Covered persons may not obtain an investigative consumer report unless the statute’s disclosure, authorization, and timing conditions are met.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumer report unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance, it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar document is signed by the consumer that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made. If no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, the disclosure shall be made to the consumer in writing and mailed or otherwise delivered to the consumer not later than three days after the report was first requested. The disclosure shall include the name and address of any investigative consumer reporting agency conducting an investigation, plus the nature and scope of the investigation requested, and a summary of the provisions of Section 1786.22. (2) If, at any time, an investigative consumer report is sought for employment purposes other than suspicion of wrongdoing or misconduct by the subject of the investigation, the person seeking the investigative consumer report may procure the report, or cause the report to be made, only if all of the following apply: (A) The person procuring or causing the report to be made has a permissible purpose, as defined in Section 1786.12. (B) The person procuring or causing the report to be made provides a clear and conspicuous disclosure in writing to the consumer at any time before the report is procured or caused to be made in a document that consists solely of the disclosure, that: (i) An investigative consumer report may be obtained. (ii) The permissible purpose of the report is identified. (iii) The disclosure may include information on the consumer’s character, general reputation, personal characteristics, and mode of living. (iv) Identifies the name, address, and telephone number of the investigative consumer reporting agency conducting the investigation. (v) Notifies the consumer in writing of the nature and scope of the investigation requested, including a summary of the provisions of Section 1786.22. (vi) Notifies the consumer of the Internet Web site address of the investigative consumer reporting agency identified in clause (iv), or, if the agency has no Internet Web site address, the telephone number of the agency, where the consumer may find information about the investigative reporting agency’s privacy practices, including whether the consumer’s personal information will be sent outside the United States or its territories and information that complies with subdivision (d) of Section 1786.20. This clause shall become operative on January 1, 2012. (C) The consumer has authorized in writing the procurement of the report. (3) If an investigative consumer report is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report will be made regarding the consumer’s character, general reputation, personal characteristics, and mode of living. The notification shall also include the name and address of the investigative consumer reporting agency that will prepare the report and a summary of the provisions of Section 1786.22. (4) The person procuring or causing the request to be made shall certify to the investigative consumer reporting agency that the person has made the applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). (5) The person procuring the report or causing it to be prepared agrees to provide a copy of the report to the subject of the investigation, as provided in subdivision (b). (b) Any person described in subdivision (d) of Section 1786.12 who requests an investigative consumer report, in accordance with subdivision (a) regarding that consumer, shall do the following: (1) Provide the consumer a means by which the consumer may indicate on a written form, by means of a box to check, that the consumer wishes to receive a copy of any report that is prepared. If the consumer wishes to receive a copy of the report, the recipient of the report shall send a copy of the report to the consumer within three business days of the date that the report is provided to the recipient, who may contract with any other entity to send a copy to the consumer. The notice to request the report may be contained on either the disclosure form, as required by subdivision (a), or a separate consent form. The copy of the report shall contain the name, address, and telephone number of the person who issued the report and how to contact them. (2) Comply with Section 1786.40, if the taking of adverse action is a consideration. (c) Subdivisions (a) and (b) do not apply to an investigative consumer report procured or caused to be prepared by an employer, if the report is sought for employment purposes due to suspicion held by an employer of wrongdoing or misconduct by the subject of the investigation. (d) Those persons described in subdivision (d) of Section 1786.12 constitute the sole and exclusive class of persons who may cause an investigative consumer report to be prepared. (Amended by Stats. 2010, Ch. 481, Sec. 1. (SB 909) Effective January 1, 2011.)
  122. 1786.18.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency generally may not include certain old or sensitive items in an investigative consumer report, and it must verify some public-record information before furnishing a report.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.18. (a) Except as authorized under subdivision (b), an investigative consumer reporting agency may not make or furnish any investigative consumer report containing any of the following items of information: (1) Bankruptcies that, from the date of the order for relief, antedate the report by more than 10 years. (2) Suits that, from the date of filing, and satisfied judgments that, from the date of entry, antedate the report by more than seven years. (3) Unsatisfied judgments that, from the date of entry, antedate the report by more than seven years. (4) Unlawful detainer actions where the defendant was the prevailing party or where the action is resolved by settlement agreement. (5) Paid tax liens that, from the date of payment, antedate the report by more than seven years. (6) Accounts placed for collection or charged to profit and loss that antedate the report by more than seven years. (7) Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedate the report by more than seven years. These items of information shall no longer be reported if at any time it is learned that, in the case of a conviction, a full pardon has been granted or, in the case of an arrest, indictment, information, or misdemeanor complaint, a conviction did not result; except that records of arrest, indictment, information, or misdemeanor complaints may be reported pending pronouncement of judgment on the particular subject matter of those records. (8) Any other adverse information that antedates the report by more than seven years. (9) Medical debt, as defined in Section 1785.3. (b) The provisions of subdivision (a) are not applicable in either of the following circumstances: (1) If the investigative consumer report is to be used in the underwriting of life insurance involving, or that may reasonably be expected to involve, an amount of two hundred fifty thousand dollars ($250,000) or more. (2) If the investigative consumer report is to be used by an employer who is explicitly required by a governmental regulatory agency to check for records that are prohibited by subdivision (a) when the employer is reviewing a consumer’s qualification for employment. (c) Except as otherwise provided in Section 1786.28, an investigative consumer reporting agency shall not furnish an investigative consumer report that includes information that is a matter of public record and that relates to an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding judgment, unless the agency has verified the accuracy of the information during the 30-day period ending on the date on which the report is furnished. (d) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report on a consumer that contains information that is adverse to the interest of the consumer and that is obtained through a personal interview with a neighbor, friend, or associate of the consumer or with another person with whom the consumer is acquainted or who has knowledge of the item of information, unless either (1) the investigative consumer reporting agency has followed reasonable procedures to obtain confirmation of the information, from an additional source that has independent and direct knowledge of the information, or (2) the person interviewed is the best possible source of the information. (Amended by Stats. 2024, Ch. 520, Sec. 5. (SB 1061) Effective January 1, 2025.)
  123. 1786.20.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Investigative consumer reporting agencies must use reasonable procedures, verify users, keep records, protect accuracy, retain reports for two years, and post or mail privacy practices information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.20. (a) An investigative consumer reporting agency shall maintain reasonable procedures designed to avoid violations of Section 1786.18 and to limit furnishing of investigative consumer reports for the purposes listed under Section 1786.12. These procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought and that the information will be used for no other purposes, and make the certifications described in paragraph (4) of subdivision (a) of Section 1786.16. From the effective date of this title, the investigative consumer reporting agency shall keep a record of the purposes for which information is sought, as stated by the user. The investigative consumer reporting agency may assume that the purpose for which a user seeks information remains the same as that which a user has previously stated. The investigative consumer reporting agency shall inform the user that the user is obligated to notify the agency of any change in the purpose for which information will be used. An investigative consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by the prospective user prior to furnishing the user any investigative consumer reports. An investigative consumer reporting agency may not furnish an investigative consumer report to a person unless it has a written agreement that the investigative consumer reports will be used by that person only for purposes listed in Section 1786.12. (b) Whenever an investigative consumer reporting agency prepares an investigative consumer report, it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. An investigative consumer reporting agency shall retain the investigative consumer report for two years after the report is provided. (c) An investigative consumer reporting agency may not make an inquiry for the purpose of preparing an investigative consumer report on a consumer for employment purposes if the making of the inquiry by an employer or prospective employer of the consumer would violate applicable federal or state equal employment opportunity law or regulation. (d) (1) An investigative consumer reporting agency doing business in this state shall conspicuously post, as defined in subdivision (b) of Section 22577 of the Business and Professions Code, on its primary Internet Web site information describing its privacy practices with respect to its preparation and processing of investigative consumer reports. If the investigative consumer reporting agency does not have an Internet Web site, it shall, upon request, mail a written copy of the privacy statement to consumers. The privacy statement shall conspicuously include, but not be limited to, both of the following: (A) A statement entitled “Personal Information Disclosure: United States or Overseas,” that indicates whether the personal information will be transferred to third parties outside the United States or its territories. (B) A separate section that includes the name, mailing address, e-mail address, and telephone number of the investigative consumer reporting agency representatives who can assist a consumer with additional information regarding the investigative consumer reporting agency’s privacy practices or policies in the event of a compromise of his or her information. (2) For purposes of this subdivision, “third party” shall include, but not be limited to, a contractor, foreign affiliate, wholly owned entity, or an employee of the investigative consumer reporting agency. (e) An investigative consumer reporting agency shall be liable to a consumer who is the subject of a report if the consumer is harmed by any unauthorized access of the consumer’s personally identifiable information, act, or omission that occurs outside the United States or its territories as a result of the investigative consumer reporting agency negligently preparing or processing an investigative consumer report, or portion thereof, outside of the United States or its territories. Liability shall be in an amount equal to the sum of (1) any actual damages sustained by the consumer as a result of the unauthorized access, and (2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees, as determined by the court. (Amended by Stats. 2010, Ch. 481, Sec. 2. (SB 909) Effective January 1, 2011.)
  124. 1786.22.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Investigative consumer reporting agencies must provide consumers access to their files and related information, subject to identification and request requirements.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.22. (a) An investigative consumer reporting agency shall supply files and information required under Section 1786.10 during normal business hours and on reasonable notice. (b) Files maintained on a consumer shall be made available for the consumer’s visual inspection, as follows: (1) In person, if he appears in person and furnishes proper identification. A copy of his file shall also be available to the consumer for a fee not to exceed the actual costs of duplication services provided. (2) By certified mail, if he makes a written request, with proper identification, for copies to be sent to a specified addressee. Investigative consumer reporting agencies complying with requests for certified mailings under this section shall not be liable for disclosures to third parties caused by mishandling of mail after such mailings leave the investigative consumer reporting agencies. (3) A summary of all information contained in files on a consumer and required to be provided by Section 1786.10 shall be provided by telephone, if the consumer has made a written request, with proper identification for telephone disclosure, and the toll charge, if any, for the telephone call is prepaid by or charged directly to the consumer. (c) The term “proper identification” as used in subdivision (b) shall mean that information generally deemed sufficient to identify a person. Such information includes documents such as a valid driver’s license, social security account number, military identification card, and credit cards. Only if the consumer is unable to reasonably identify himself with the information described above, may an investigative consumer reporting agency require additional information concerning the consumer’s employment and personal or family history in order to verify his identity. (d) The investigative consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished him pursuant to Section 1786.10. (e) The investigative consumer reporting agency shall provide a written explanation of any coded information contained in files maintained on a consumer. This written explanation shall be distributed whenever a file is provided to a consumer for visual inspection as required under Section 1786.22. (f) The consumer shall be permitted to be accompanied by one other person of his choosing, who shall furnish reasonable identification. An investigative consumer reporting agency may require the consumer to furnish a written statement granting permission to the consumer reporting agency to discuss the consumer’s file in such person’s presence. (Amended by Stats. 1976, Ch. 666.)
  125. 1786.24.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency must reinvestigate disputed file information, notify relevant parties, and delete or modify information if it cannot be verified.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.24. (a) If the completeness or accuracy of any item of information contained in his or her file is disputed by a consumer, and the dispute is conveyed directly to the investigative consumer reporting agency by the consumer, the investigative consumer reporting agency shall, without charge, reinvestigate and record the current status of the disputed information or delete the item from the file in accordance with subdivision (c), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer. (b) The agency shall notify any person who provided information in dispute at the address and in the manner specified by that person. The notice shall include all relevant information regarding the dispute that the investigative consumer reporting agency has received from the consumer. The agency shall also promptly provide to the person who provided the information in dispute all relevant information regarding the dispute that is received by the agency from the consumer during the reinvestigation. (c) In conducting a reinvestigation, the investigative consumer reporting agency shall review and consider all relevant information submitted by the consumer with respect to the disputed item of information. (d) Notwithstanding subdivision (a), an investigative consumer reporting agency may terminate a reinvestigation of information disputed by a consumer if the investigative consumer reporting agency reasonably determines that the dispute is frivolous or irrelevant, including by reason of a failure by a consumer to provide sufficient information to investigate the disputed information. Upon making a determination that a dispute is frivolous or irrelevant, the investigative consumer reporting agency shall notify the consumer, by mail or, if authorized by the consumer for that purpose, by any other means available to the agency. In this notification, the investigative consumer reporting agency shall state the specific reasons why it has determined that the consumer’s dispute is frivolous or irrelevant and provide a description of any information required to investigate the disputed information, that may consist of a standardized form describing the general nature of the required information. (e) If a reinvestigation is made and, after reinvestigation, the disputed item of information is found to be inaccurate, incomplete, or cannot be verified by the evidence submitted, the investigative consumer reporting agency shall promptly delete that information from the consumer’s file or modify the information, as appropriate, based on the results of the reinvestigation, and shall notify the consumer that the information has been deleted or modified. The consumer reporting agency shall also notify any and all sources from which the disputed information was obtained and inform them in writing of the reasons and results of the reinvestigation, and send a copy of this notification to the consumer. In accordance with subdivision (b) of Section 1786.10, the copy of the notification sent to the consumer need not reveal the identity of the source of information, unless otherwise required by law. (f) No information may be reinserted in the file of a consumer after having been deleted pursuant to this section, unless the person who furnished the information verifies that the information is complete and accurate. If any information deleted from the file of a consumer is reinserted in the file, the investigative consumer reporting agency shall promptly notify the consumer of the reinsertion in writing or, if authorized by the consumer for that purpose, by any other means available to the agency. As part of, or in addition to, this notice, the investigative consumer reporting agency shall provide to the consumer in writing (1) a statement that the disputed information has been reinserted, (2) the name, address, and telephone number of any furnisher of information contacted or that contacted the investigative consumer reporting agency in connection with the reinsertion, and the telephone number of the furnisher, if reasonably available, and (3) a notice that the consumer has the right to a reinvestigation of the information reinserted by the investigative consumer reporting agency and to add a statement to his or her file disputing the accuracy or completeness of the information. (g) An investigative consumer reporting agency shall provide notice to the consumer of the results of any reinvestigation under this section by mail or, if authorized by the consumer for that purpose, by other means available to the agency. The notice shall include (1) a statement that the reinvestigation is completed, (2) an investigative consumer report that is based on the consumer’s file as that file is revised as a result of the reinvestigation, (3) a description or indication of any changes made in the investigative consumer report as a result of those revisions to the consumer’s file, (4) a notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the investigative consumer reporting agency, including the name, business address, and telephone number of any furnisher of information contacted in connection with that information, (5) a notice that the consumer has the right to add a statement to the consumer’s file disputing the accuracy or completeness of the information, and (6) a notice that the consumer has the right to request that the investigative consumer reporting agency furnish notifications under subdivision (k). (h) The presence of information in the consumer’s file that contradicts the contention of the consumer shall not, in and of itself, constitute reasonable grounds for believing the dispute is frivolous or irrelevant. (i) If the investigative consumer reporting agency determines that the dispute is frivolous or irrelevant, or if the reinvestigation does not resolve the dispute, or if the information is reinserted into the file of a consumer pursuant to subdivision (f), the consumer may file a brief statement setting forth the nature of the dispute. The investigative consumer reporting agency may limit these statements to not more than 500 words if it provides the consumer with assistance in writing a clear summary of the dispute. (j) If a statement of dispute is filed, the investigative consumer reporting agency shall, in any subsequent investigative consumer report containing the information in question, clearly note that the information is disputed by the consumer and shall include in the report either the statement of the consumer or a clear and accurate summary thereof. (k) Following the deletion of information from the file of a consumer pursuant to this section, or following the filing of a dispute pursuant to subdivision (i), the investigative consumer reporting agency shall, at the request of the consumer, furnish notification that the item of information has been deleted or that the item of information is disputed. In the case of disputed information, the notification shall include the statement or summary of the dispute filed pursuant to subdivision (i). This notification shall be furnished to any person who has, within two years prior to the deletion or the filing of the dispute, received an investigative consumer report concerning the consumer for employment purposes, or who has, within one year of the deletion or the filing of the dispute, received an investigative consumer report concerning the consumer for any other purpose, if these investigative consumer reports contained the deleted or disputed information, unless the consumer specifically requests in writing that this notification not be given to all persons or to any specified persons. The investigative consumer reporting agency shall clearly and conspicuously disclose to the consumer his or her rights to make a request that this notification not be made. (l) An investigative consumer reporting agency shall maintain reasonable procedures designed to prevent the reappearance in the file of a consumer and in investigative consumer reports information that has been deleted pursuant to this section and not reinserted pursuant to subdivision (f). (m) If the dispute of a consumer is resolved by deletion of the disputed information within three business days, beginning with the day the investigative consumer reporting agency receives notice of the dispute in accordance with subdivision (a), the investigative consumer reporting agency is exempt from requirements for further action under subdivisions (g), (i), and (j), if the agency: (1) provides prompt notice of the deletion to the consumer by telephone, (2) provides written confirmation of the deletion and a copy of an investigative consumer report of the consumer that is based on the file of a consumer after the deletion, and (3) includes, in the telephone notice or in a written notice that accompanies the confirmation and report, a statement of the consumer’s right to request under subdivision (k) that the agency not furnish notifications under that subdivision. (n) Any investigative consumer reporting agency that compiles and maintains files on consumers on a nationwide basis, as defined in the federal Fair Credit Reporting Act, as amended (15 U.S.C. Sec. 1681 et seq.), shall implement an automated system through which furnishers of information to that agency may report the results of a reinvestigation that finds incomplete or inaccurate information in the file of a consumer to other investigative consumer reporting agencies. (o) All actions to be taken by an investigative consumer reporting agency under this section are governed by the applicable time periods specified in Section 611 of the federal Fair Credit Reporting Act, as amended (15 U.S.C. Sec. 1681i). (Amended by Stats. 2004, Ch. 183, Sec. 32. Effective January 1, 2005.)
  126. 1786.26.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Investigative consumer reporting agencies may charge up to $8 for certain consumer disclosures, but several required notices and disclosures must be free.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.26. (a) Except as otherwise provided in subdivision (c), an investigative consumer reporting agency may charge a consumer a fee not exceeding eight dollars ($8) for making disclosures to the consumer pursuant to Sections 1786.10, 1786.11, and 1786.22. Any charges shall be indicated to the consumer prior to disclosure. (b) An investigative consumer reporting agency shall not impose any charge for providing notice to a consumer required under Section 1786.24, furnishing an investigative consumer report pursuant to Section 1786.24, or notifying a person pursuant to subdivision (k) of Section 1786.24 of the deletion of information that is found to be inaccurate or that cannot be verified. (c) Upon the request of the consumer, an investigative consumer reporting agency shall make all disclosures pursuant to Section 1786.10 and 1786.22 once during any 12-month period without charge to that consumer if the consumer certifies in writing that he or she (1) is unemployed and intends to apply for employment in the 60-day period beginning on the date the certification is made, (2) is a recipient of public welfare assistance, or (3) has reason to believe that the file on the consumer at the investigative consumer reporting agency contains inaccurate information due to fraud. (d) An investigative consumer reporting agency shall not impose any charge on a consumer for providing any notification or making any disclosure required by this title, except as authorized by this section. (Amended by Stats. 2001, Ch. 354, Sec. 14. Effective January 1, 2002.)
  127. 1786.28.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Investigative consumer reporting agencies must identify the source of public record information in reports, and consumer reporting agencies furnishing reports for employment purposes must use strict procedures to keep likely harmful public record information complete and up to date.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.28. (a) Each investigative consumer reporting agency that collects, assembles, evaluates, compiles, reports, transmits, transfers, or communicates items of information concerning consumers which are matters of public record shall specify in any report containing public record information the source from which this information was obtained, including the particular court, if applicable, and the date that this information was initially reported or publicized. (b) A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles, collects, assembles, evaluates, reports, transmits, transfers, or communicates items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer’s ability to obtain employment shall in addition maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported. (Amended by Stats. 2001, Ch. 354, Sec. 15. Effective January 1, 2002.)
  128. 1786.29.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency must give specific notices on the first page of an investigative consumer report, and must give certain consumers a written notice in plain English and Spanish about their right to receive disclosures.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.29. An investigative consumer reporting agency shall provide the following notices on the first page of an investigative consumer report: (a) A notice in at least 12-point boldface type setting forth that the report does not guarantee the accuracy or truthfulness of the information as to the subject of the investigation, but only that it is accurately copied from public records, and information generated as a result of identity theft, including evidence of criminal activity, may be inaccurately associated with the consumer who is the subject of the report. (b) An investigative consumer reporting agency shall provide a consumer seeking to obtain a copy of a report or making a request to review a file, a written notice in simple, plain English and Spanish setting forth the terms and conditions of his or her right to receive all disclosures, as provided in Section 1786.26. (Amended by Stats. 2002, Ch. 1030, Sec. 5. Effective September 28, 2002.)
  129. 1786.30.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency may not put adverse information into a later investigative consumer report unless it has been verified, or it was received within the prior three months; updated public-record information is excepted.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.30. Whenever an investigative consumer reporting agency prepares an investigative consumer report, no adverse information in the report (other than information that is a matter of public record, the status of which has been updated pursuant to Section 1786.28) may be included in a subsequent investigative consumer report unless that adverse information has been verified in the process of making the subsequent investigative consumer report, or the adverse information was received within the three-month period preceding the date the subsequent report is furnished. (Amended by Stats. 1998, Ch. 988, Sec. 10. Effective January 1, 1999.)
  130. 1786.40.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Users of investigative consumer reports must notify consumers when adverse action is taken based on a report and give the report agency’s name and address. In certain insurance cases, they must also disclose the nature and substance of the information on request and tell the consumer about that request right when the adverse action is communicated.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 2. Obligations of Investigative Consumer Reporting Agencies [1786.10 - 1786.40] ( Article 2 added by Stats. 1975, Ch. 1272. ) ## 1786.40. (a) Whenever insurance for personal, family, or household purposes, employment, or the hiring of a dwelling unit involving a consumer is denied, or the charge for that insurance or the hiring of a dwelling unit is increased, under circumstances in which a report regarding the consumer was obtained from an investigative consumer reporting agency, the user of the investigative consumer report shall so advise the consumer against whom the adverse action has been taken and supply the name and address of the investigative consumer reporting agency making the report. (b) Whenever insurance for personal, family, or household purposes involving a consumer is denied or the charge for that insurance is increased, either wholly or in part because of information bearing upon the consumer’s general reputation, personal characteristics, or mode of living, that was obtained from a person other than an investigative consumer reporting agency, the consumer, or another person related to the consumer and acting on the consumer’s behalf, the user of the information shall, within a reasonable period of time, and upon the consumer’s written request for the reasons for the adverse action received within 60 days after learning of the adverse action, disclose the nature and substance of the information to the consumer. The user of the information shall clearly and accurately disclose to the consumer his or her right to make this written request at the time the adverse action is communicated to the consumer. (Added by Stats. 2002, Ch. 1030, Sec. 6. Effective September 28, 2002.)
  131. 1786.50.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    An investigative consumer reporting agency or user of information that fails to comply with this title for an investigative consumer report can be liable to the consumer for damages, costs, and attorney’s fees; punitive damages are possible for grossly negligent or willful violations.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.50. (a) An investigative consumer reporting agency or user of information that fails to comply with any requirement under this title with respect to an investigative consumer report is liable to the consumer who is the subject of the report in an amount equal to the sum of all the following: (1) Any actual damages sustained by the consumer as a result of the failure or, except in the case of class actions, ten thousand dollars ($10,000), whichever sum is greater. (2) In the case of any successful action to enforce any liability under this chapter, the costs of the action together with reasonable attorney’s fees as determined by the court. (b) If the court determines that the violation was grossly negligent or willful, the court may, in addition, assess, and the consumer may recover, punitive damages. (c) Notwithstanding subdivision (a), an investigative consumer reporting agency or user of information that fails to comply with any requirement under this title with respect to an investigative consumer report shall not be liable to a consumer who is the subject of the report where the failure to comply results in a more favorable investigative consumer report than if there had not been a failure to comply. (Amended by Stats. 2003, Ch. 146, Sec. 2. Effective January 1, 2004.)
  132. 1786.52.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    This section preserves a consumer’s right to sue for invasion of privacy or defamation, and sets a two-year filing period from discovery for actions under this title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.52. Nothing in this chapter shall in any way affect the right of any consumer to maintain an action against an investigative consumer reporting agency, a user of an investigative consumer report, or an informant for invasion of privacy or defamation. An action to enforce any liability created under this title may be brought in any appropriate court of competent jurisdiction within two years from the date of discovery. (a) Any investigative consumer reporting agency or user of information against whom an action brought pursuant to Section 1681n or 1681o of Title 15 of the United States Code is pending shall not be subject to suit for the same act or omission under Section 1786.50. (b) The entry of a final judgment against the investigative consumer reporting agency or user of information in an action brought pursuant to the provisions of Section 1681n or 1681o of Title 15 of the United States Code shall be a bar to the maintenance of any action based on the same act or omission which might be brought under this title. (Amended by Stats. 2001, Ch. 354, Sec. 19. Effective January 1, 2002.)
  133. 1786.53.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    Certain persons using public-record information for employment purposes must give the consumer a copy of the public record, and must include a waiver box on job or other written forms.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.53. (a) Any person who collects, assembles, evaluates, compiles, reports, transmits, transfers, or communicates information on a consumer’s character, general reputation, personnel characteristics, or mode of living, for employment purposes, which are matters of public record, and does not use the services of an investigative consumer reporting agency, shall provide that information to the consumer pursuant to subdivision (b). For purposes of this section: (1) “Adverse action,” as relating to employment, means a denial of employment or any decision made for an employment purpose that adversely affects any current or prospective employee. (2) The term “person” does not include an agency subject to the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8). (3) “Public records” means records documenting an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding judgment. (b) (1) Any person described in subdivision (a), or any person who receives information pursuant to subdivision (a), shall provide a copy of the related public record to the consumer within seven days after receipt of the information, regardless of whether the information is received in a written or oral form. (2) Any person shall provide on any job application form, or any other written form, a box that, if checked by the consumer, permits the consumer to waive his or her right to receive a copy of any public record obtained pursuant to this section. (3) If any person obtains a public record pursuant to this section for the purpose of conducting an investigation for suspicion of wrongdoing or misconduct by the subject of the investigation, the person may withhold the information until the completion of the investigation. Upon completion, the person shall provide a copy of the public record pursuant to paragraph (1), unless the consumer waived his or her rights pursuant to paragraph (2). (4) If any person takes any adverse action as a result of receiving information pursuant to subdivision (a), the person shall provide to the consumer a copy of the public record, regardless of whether the consumer waived his or her rights pursuant to paragraph (2). (c) Nothing in subdivision (a) or (b) requires any person to provide the same information to any consumer on more than one occasion. (Amended by Stats. 2002, Ch. 1030, Sec. 7. Effective September 28, 2002.)
  134. 1786.54.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    This title does not apply to certain investigative consumer reports tied to land and land-title public records, or to reports made before a title insurance policy is issued.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.54. This title does not apply to any investigative consumer report which by its terms is limited to disclosures from public records relating to land and land titles or which is a report issued preliminary to the issuance of a policy of title insurance, and it does not apply to any person whose records are maintained for the primary purpose of reporting those portions of public records which impart constructive notice under the law of matters relating to land and land titles and which may be issued as the basis for the issuance of a policy of title insurance. (Added by Stats. 1975, Ch. 1272.)
  135. 1786.55.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    This section says the chapter does not change certain existing laws and does not require disclosure of privileged attorney-client communications or attorney work product.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.55. Nothing in this chapter is intended to modify Section 1198.5 of the Labor Code or existing law concerning information obtained by an employer or employment agency without the use of the services of an investigative consumer reporting agency for employment reference checks, background investigations, credential verifications, or employee investigations, except as provided in Section 1786.53. Nothing in this chapter is intended to change or supersede existing law related to privileged attorney-client communications or attorney work product, or require the production or disclosure of that information. (Added by Stats. 2002, Ch. 1030, Sec. 8. Effective September 28, 2002.)
  136. 1786.56.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

    Verify source ↗

    If part of this act is invalid, the rest of the act still applies if it can work without the invalid part.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.56. If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. (Added by Stats. 1975, Ch. 1272.)
  137. 1786.57.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

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    Any waiver of this title is void and unenforceable because it is contrary to public policy.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.57. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 10. Effective January 1, 2003.)
  138. 1786.60.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. )

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    Until July 1, 2004, a financial institution may print an individual’s Social Security number on mailed account statements or similar documents if the number was provided for certain ACH-related transactions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES [1786 - 1786.60] ( Title 1.6A added by Stats. 1975, Ch. 1272. ) ## ARTICLE 4. Remedies [1786.50 - 1786.60] ( Article 4 added by Stats. 1975, Ch. 1272. ) ## 1786.60. Notwithstanding subdivision (a) of Section 1798.85, prior to July 1, 2004, any financial institution may print the social security number of an individual on any account statement or similar document mailed to that individual, if the social security number is provided in connection with a transaction governed by the rules of the National Automated Clearing House Association, or a transaction initiated by a federal governmental entity through an automated clearing house network. (Amended by Stats. 2003, Ch. 907, Sec. 4. Effective January 1, 2004.)
  139. 1787.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 1. General Provisions [1787.1 - 1787.2] ( Article 1 added by Stats. 1976, Ch. 1072. )

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    This title may be cited as the “Holden Credit Denial Disclosure Act of 1976.”

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 1. General Provisions [1787.1 - 1787.2] ( Article 1 added by Stats. 1976, Ch. 1072. ) ## 1787.1. This title may be cited as “The Holden Credit Denial Disclosure Act of 1976.” (Added by Stats. 1976, Ch. 1072.)
  140. 1787.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 1. General Provisions [1787.1 - 1787.2] ( Article 1 added by Stats. 1976, Ch. 1072. )

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    A creditor must notify a credit applicant of its decision within 30 days after a completed written application, and a denied applicant is entitled to a statement of reasons.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 1. General Provisions [1787.1 - 1787.2] ( Article 1 added by Stats. 1976, Ch. 1072. ) ## 1787.2. (a) Within 30 days, or at a later reasonable time as specified in federal law or regulations, after receipt of a completed written application for credit, a creditor shall notify the applicant of its action on the application. (b) Each applicant denied credit shall be entitled to a statement of reasons for such action from the creditor. A creditor satisfies this obligation by: (1) Providing statements of reasons in writing as a matter of course to applicants denied credit; or (2) Giving written notification of credit denial which discloses: (i) The applicant’s right to a statement of reasons within 30 days after receipt by the creditor of a request made within 60 days after such notification; and (ii) The identity and address of the person or office from which the statement of reasons may be obtained. (3) The statement of reasons may be given orally if the written notification advises the applicant of the right to have the statement of reasons confirmed in writing on written request. (c) A statement of reasons meets the requirements of this section only if it contains the specific reasons for the credit denial. (d) Where a creditor has been requested by a third party to make a specific extension of credit directly or indirectly to an applicant, the notification and statement of reasons required by this section may be made directly by such creditor, or indirectly through the third party, provided in either case that the identity of the creditor is disclosed. (e) For purposes of this section: (1) The term “applicant” means a natural person who applies for credit primarily for personal, family or household purposes. (2) The term “credit denial” means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested. Such term does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credit limit without a specific written application or written request for an increase in the credit limit. (3) The term “creditor” refers only to creditors who regularly extend, or arrange for the extension of, credit whether in connection with loans, sales of property or services, or otherwise. (f) Nothing in this section shall be construed to limit any authority, derived from other provisions of law, of any state department or agency. (Added by Stats. 1976, Ch. 1072.)
  141. 1787.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 2. Remedies [1787.3 - 1787.4] ( Article 2 added by Stats. 1976, Ch. 1072. )

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    Creditors who fail to comply with the title’s requirements can owe actual damages, punitive damages, costs, and attorney’s fees; actions under Section 1787.2 must be filed within two years.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 2. Remedies [1787.3 - 1787.4] ( Article 2 added by Stats. 1976, Ch. 1072. ) ## 1787.3. (a) Any creditor who fails to comply with any requirement of Section 1787.2 shall be liable for any actual damages sustained by an applicant as a result of such failure. (b) Any creditor, other than a government or governmental subdivision or agency, who fails to comply with any requirement imposed under this title shall be liable to the aggrieved applicant for punitive damages in an amount not greater than ten thousand dollars ($10,000), in addition to any actual damages provided in subdivision (a), except that in the case of a class action the total recovery under this subdivision shall not exceed the lesser of five hundred thousand dollars ($500,000) or 1 percent of the net worth of the creditor. In determining the amount of such damages in any action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor’s failure of compliance was intentional. (c) In the case of any action brought by an aggrieved applicant under subdivision (a) or (b), the costs of the action, together with a reasonable attorney’s fee as determined by the court, shall be added to any damages awarded by the court. (d) No provision of this title imposing liability shall apply to any act done or omitted in good faith in conformity with any official rule, regulation, or interpretation thereby by the Board of Governors of the Federal Reserve System or in conformity with any interpretation or approval by an official or employee of the Federal Reserve System duly authorized by the board to issue such interpretations or approvals under such procedures as the board may prescribe therefor, notwithstanding that after such act or omission has occurred, such rule, regulation, interpretation, or approval is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. (e) Actions alleging a failure to comply with any requirement of Section 1787.2 shall be brought within two years from the date of the occurrence of the violation. (Added by Stats. 1976, Ch. 1072.)
  142. 1787.4.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 2. Remedies [1787.3 - 1787.4] ( Article 2 added by Stats. 1976, Ch. 1072. )

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    A waiver of the provisions of this title is void and unenforceable because it is contrary to public policy.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6B. CONSUMER CREDIT DENIAL [1787.1 - 1787.4] ( Title 1.6B added by Stats. 1976, Ch. 1072. ) ## ARTICLE 2. Remedies [1787.3 - 1787.4] ( Article 2 added by Stats. 1976, Ch. 1072. ) ## 1787.4. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 11. Effective January 1, 2003.)
  143. 1788.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. )

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    This title may be cited as the Rosenthal Fair Debt Collection Practices Act.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. ) ## 1788. This title may be cited as the Rosenthal Fair Debt Collection Practices Act. (Amended by Stats. 2000, Ch. 375, Sec. 5. Effective January 1, 2001.)
  144. 1788.1.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. )

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    This section says debt collectors must not use unfair or deceptive collection practices, and debtors must act fairly when entering into and honoring debts.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. ) ## 1788.1. (a) The Legislature makes the following findings: (1) The banking and credit system and grantors of credit to consumers are dependent upon the collection of just and owing debts. Unfair or deceptive collection practices undermine the public confidence, which is essential to the continued functioning of the banking and credit system and sound extensions of credit to consumers and small businesses. (2) There is need to ensure that debt collectors and debtors exercise their responsibilities to one another with fairness, honesty and due regard for the rights of the other. (b) It is the purpose of this title to prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and small business debts and to require debtors to act fairly in entering into and honoring those debts, as specified in this title. (c) Nothing in this title is intended to create or impose an additional licensing requirement under Division 25 (commencing with Section 100000) of the Financial Code on a debt collector with respect to the collection of covered commercial debt or covered commercial credit. (d) The provisions of this title related to covered commercial credit or covered commercial debt apply to covered commercial credit or covered commercial debt entered into, renewed, sold, or assigned on or after July 1, 2025. (Amended by Stats. 2024, Ch. 522, Sec. 1. (SB 1286) Effective January 1, 2025.)
  145. 1788.10.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors must not use threats, force, false accusations, defamation threats, or other prohibited threats when trying to collect a covered debt.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.10. No debt collector shall collect or attempt to collect a covered debt by means of the following conduct: (a) The use, or threat of use, of physical force or violence or any criminal means to cause harm to the person, or the reputation, or the property of any person. (b) The threat that the failure to pay a covered debt will result in an accusation that the debtor has committed a crime where the accusation, if made, would be false. (c) The communication of, or threat to communicate to any person the fact that a debtor has engaged in conduct, other than the failure to pay a covered debt, which the debt collector knows or has reason to believe will defame the debtor. (d) The threat to the debtor to sell or assign to another person the obligation of the debtor to pay a covered debt, with an accompanying false representation that the result of the sale or assignment would be that the debtor would lose any defense to the covered debt. (e) The threat to any person that nonpayment of the covered debt may result in the arrest of the debtor or the seizure, garnishment, attachment, or sale of any property or the garnishment or attachment of wages of the debtor, unless the action is in fact contemplated by the debt collector and permitted by the law. (f) The threat to take any action against the debtor, which is prohibited by this title. (Amended by Stats. 2024, Ch. 522, Sec. 3. (SB 1286) Effective January 1, 2025.)
  146. 1788.100.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 1. Student Borrower Bill Of Rights [1788.100 - 1788.101] ( Chapter 1 added by Stats. 2020, Ch. 154, Sec. 2. )

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    This section defines key terms used in California’s student loan borrower rights title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 1. Student Borrower Bill Of Rights [1788.100 - 1788.101] ( Chapter 1 added by Stats. 2020, Ch. 154, Sec. 2. ) ## 1788.100. For purposes of this title, the following definitions apply: (a) “Borrower” means either of the following: (1) A person who has received or agreed to pay a student loan. (2) A person who shares responsibility for repaying a student loan with a person described in paragraph (1). (b) “Borrower with disabilities” means a borrower who a student loan servicer knows, or reasonably should know, is a person who has a disability, as defined in Section 54. (c) “Borrower working in public service” means a borrower who a student loan servicer knows, or reasonably should know, is employed in a public service job, as defined in the Higher Education Act (20 U.S.C. Sec. 1087e(m)) and its implementing regulations. (d) “Commissioner” means the Commissioner of Financial Protection and Innovation. (e) “Department” means the Department of Financial Protection and Innovation. (f) “Engage in the business” means, without limitation, servicing student loans. (g) “In this state” means any activity of a person relating to servicing student loans that originates from this state and is directed to persons outside this state, that originates from outside this state and is directed to persons inside this state, or that originates inside this state and is directed to persons inside this state. (h) “Licensee” means a person licensed pursuant to the Student Loan Servicing Act (Division 12.5 (commencing with Section 28100) of the Financial Code). (i) “Military borrower” means any of the following: (1) A borrower who is one of the following: (A) A servicemember as defined in the Servicemember Civil Relief Act (50 U.S.C. Sec. 3911). (B) Self-identifies as a service member when interacting with a student loan servicer. (C) Is a service member as defined in Section 400 of the Military and Veterans Code. (2) A borrower who is a veteran of a branch of the Armed Forces as defined in Section 101 of Title 38 of the United States Code. (3) An authorized representative of a borrower described in paragraph (1) or (2). (j) “Older borrower” means a borrower who a student loan servicer knows, or reasonably should know, is a senior citizen, as defined in Section 51.3. (k) “Overpayment” means a payment on a student loan account in excess of the monthly amount due from a borrower on a student loan, also commonly referred to as a prepayment. (l) “Partial payment” means a payment on a student loan account in an amount less than the current amount due from a borrower on the student loan account, also commonly referred to as an underpayment. (m) “Person” means an individual, a corporation, a partnership, a limited liability company, an association, a trust, an unincorporated organization, a government, or a political subdivision of a government, and any other entity. (n) “Qualified request” means any inbound telephone call, the subject of which cannot be resolved in a single phone call, made by a borrower to a student loan servicer in which either the borrower requests specific information from the student loan servicer or reports what the borrower believes to be an error regarding the borrower’s account. (o) “Qualified written request” means a written correspondence made by a borrower, other than notice on a payment medium supplied by a student loan servicer, that is transmitted by mail, facsimile, or electronically through an email address or internet website designated by the student loan servicer to receive communications from a borrower that does all of the following: (1) Enables the student loan servicer to identify the name and account of the borrower. (2) Includes a statement of the reasons for the belief by the borrower, to the extent applicable, that the account is in error or that provides sufficient detail to the servicer regarding information sought by the borrower, such as requesting a complete payment history for the loan or the borrower’s account, a copy of the borrower’s student loan promissory note, or the contact information for the creditor to whom the borrower’s student loan is owed. (p) “Servicing” means any of the following activities related to a student loan of a borrower: (1) Performing both of the following: (A) Receiving any scheduled periodic payments from a borrower or any notification that a borrower made a scheduled periodic payment. (B) Applying payments to the borrower’s account pursuant to the terms of the student loan or the contract governing the servicing. (2) During a period when no payment is required on a student loan, performing both of the following: (A) Maintaining account records for the student loan. (B) Communicating with the borrower regarding the student loan on behalf of the owner of the student loan promissory note. (3) Interacting with a borrower related to that borrower’s student loan, with the goal of helping the borrower avoid default on their student loan or facilitating the activities described in paragraph (1) or (2). (q) (1) “Student loan” means any loan made solely for use to finance a postsecondary education and costs of attendance at a postsecondary institution, including, but not limited to, tuition, fees, books and supplies, room and board, transportation, and miscellaneous personal expenses. A “student loan” includes a loan made to refinance a student loan. (2) (A) A “student loan” shall not include an extension of credit under an open-end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling. (B) A “student loan” shall not include an extension of credit made by a postsecondary educational institution to a borrower if one of the following applies: (i) The term of the extension of credit is no longer than the borrower’s education program. (ii) The remaining, unpaid principal balance of the extension of credit is less than one thousand five hundred dollars ($1,500) at the time of the borrower’s graduation or completion of the program. (iii) The borrower fails to graduate or successfully complete their education program and has a balance due at the time of their disenrollment from the postsecondary institution. (r) “Student loan account” means student loans owed by a borrower grouped together for billing purposes by a student loan servicer. (s) “Student loan servicer” means any person engaged in the business of servicing student loans in this state. A “student loan servicer” does not include any of the following: (1) A debt collector, as defined in subdivision (c) of Section 1788.2, whose student loan debt collection business, and business operations, involve collecting, or attempting to collect, on defaulted student loans, that is, federal student loans for which no payment has been received for 270 days or more, or private student loans, in default, according to the terms of the loan documents. Debt collectors who also service nondefaulted student loans as part of their business and business operations are “student loan servicers.” (2) In connection with its responsibilities as a guaranty agency engaged in default aversion, a state or nonprofit private institution or organization having an agreement with the United States Secretary of Education under the Higher Education Act of 1965 (20 U.S.C. Sec. 1078(b)). (3) A federally chartered credit union. (Amended by Stats. 2022, Ch. 452, Sec. 20. (SB 1498) Effective January 1, 2023.)
  147. 1788.101.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 1. Student Borrower Bill Of Rights [1788.100 - 1788.101] ( Chapter 1 added by Stats. 2020, Ch. 154, Sec. 2. )

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    This section prohibits abusive, deceptive, misleading, and certain reporting or communication practices by people and student loan servicers when servicing student loans in California.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 1. Student Borrower Bill Of Rights [1788.100 - 1788.101] ( Chapter 1 added by Stats. 2020, Ch. 154, Sec. 2. ) ## 1788.101. (a) (1) A person shall not engage in abusive acts or practices when servicing a student loan in this state. (2) An act or practice is abusive in connection with the servicing of a student loan, if the act or practice does either of the following: (A) Materially interferes with the ability of a borrower to understand a term or condition of a student loan. (B) Takes unreasonable advantage of any of the following: (i) A lack of understanding on the part of a borrower of the material risks, costs, or conditions of the student loan. (ii) The inability of a borrower to protect the interests of the borrower when selecting or using either of the following: (I) A student loan. (II) A feature, term, or condition of a student loan. (iii) The reasonable reliance by the borrower on a person engaged in servicing a student loan to act in the interests of the borrower. (3) Abusive acts and practices include, but are not limited to, those described in paragraph (2). (b) A student loan servicer shall not do any of the following: (1) Directly or indirectly employ a scheme, device, or artifice to defraud or mislead a borrower. (2) Engage in an unfair or deceptive practice toward a borrower or misrepresent or omit material information in connection with the servicing of a student loan, including, but not limited to, misrepresenting the amount, nature, or terms of a fee or payment due or claimed to be due on a student loan, the terms and conditions of the student loan agreement, or the borrower’s obligations under the student loan. (3) Misapply payments made by a borrower to the outstanding balance of a student loan. (4) (A) If the student loan servicer is required to or voluntarily reports to a consumer reporting agency, fail to accurately report each borrower’s payment performance to at least one consumer reporting agency that compiles and maintains files on consumers on a nationwide basis, upon acceptance as a data furnisher by that consumer reporting agency. (B) For purposes of this paragraph, “consumer reporting agency that compiles and maintains files on consumers on a nationwide basis” has the same meaning as defined in the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(p)). (5) Refuse to communicate with an authorized representative of the borrower who provides a written authorization signed by the borrower, provided the student loan servicer may adopt reasonable procedures for verifying that the representative is in fact authorized to act on behalf of the borrower and for protecting the borrower from fraud or abusive practices. (6) Negligently or intentionally make a false statement or knowingly and willfully make an omission of a material fact in connection with information or reports filed with the department or another governmental agency. (7) Engage in an unfair or deceptive practice toward a military borrower or misrepresent or omit material information in connection with the servicing of a student loan owed by a military borrower. For purposes of this paragraph, “misrepresent or omit material information” includes, but is not limited to: (A) Misrepresenting or omitting the availability of a program or protection specific to military borrowers or applicable to military borrowers. (B) A misrepresentation or omission in violation of paragraph (2) of this subdivision. (8) Engage in an unfair or deceptive practice toward any borrower working in public service or misrepresent or omit material information in connection with the servicing of a student loan owed by a borrower working in public service. For purposes of this paragraph, “misrepresent or omit material information” includes, but is not limited to: (A) Misrepresenting or omitting the availability of a program or protection specific to borrowers working in public service or applicable to those borrowers. (B) A misrepresentation or omission in violation of paragraph (2). (9) Engage in an unfair or deceptive practice toward an older borrower or older cosigner or misrepresent or omit material information in connection with the servicing of a student loan owed or cosigned by an older borrower. For purposes of this paragraph, “misrepresent or omit material information” includes, but is not limited to: (A) Misrepresenting or omitting the availability of a program or protection specific to older borrowers or older cosigners or applicable to those borrowers or cosigners. (B) Misrepresenting or omitting the older borrower’s or older cosigner’s obligations under the student loan. (C) A misrepresentation or omission in violation of paragraph (2). (10) Engage in an unfair or deceptive practice toward a borrower with a disability or misrepresent or omit material information in connection with the servicing of a student loan owed by a borrower with a disability. For purposes of this paragraph, “misrepresent or omit material information” includes, but is not limited to: (A) Misrepresenting or omitting the availability of a program or protection specific to borrowers with disabilities or applicable to those borrowers. (B) A misrepresentation or omission in violation of paragraph (2) of this subdivision. (Added by Stats. 2020, Ch. 154, Sec. 2. (AB 376) Effective January 1, 2021.)
  148. 1788.102.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 2. Setting Clear “Rules of the Road” for the Student Loan Industry [1788.102- 1788.102.] ( Chapter 2 added by Stats. 2020, Ch. 154, Sec. 2. )

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    Student loan servicers must follow detailed rules for posting, crediting, allocating, and protecting borrower payments, plus notice, recordkeeping, training, and complaint-response duties.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 2. Setting Clear “Rules of the Road” for the Student Loan Industry [1788.102- 1788.102.] ( Chapter 2 added by Stats. 2020, Ch. 154, Sec. 2. ) ## 1788.102. Except to the extent that this section is inconsistent with any provision of federal law or regulation, and then only to the extent of the inconsistency, a student loan servicer shall do all of the following: (a) Post and process student loan payments in a timely manner pursuant to the servicer’s established payment processing policies that shall be disclosed to and readily accessible by borrowers and credit student loan payments in a timely manner in accordance with the following: (1) A payment received on or before 11:59 p.m. on the date on which that payment is due, in the amount, manner, and location indicated by the person engaged in student loan servicing, shall be credited as effective on the date on which the payment was received by the person engaged in student loan servicing in this state. A person engaged in student loan servicing in this state shall treat a payment received from the borrower on the borrower’s due date as an “on-time” payment. (2) If a payment is made by check, credit the payment on the date the check was received by the student loan servicer regardless of the date of processing. A borrower’s online account shall reflect payments made within three business days of the date of payment unless payment is made by check and contains no information identifying to which account or loan the payment should be credited. In the event the student loan servicer receives a paper check with no information identifying to which account or loan the payment should be credited, the student loan servicer shall determine, within 10 business days, to which account and loan the payment should be credited. When the servicer determines to which account and loan the payment should be credited, the servicer shall credit the payment as of the date the payment was received by the servicer and update the borrower’s online account within one business day. (b) If a person engaged in servicing a student loan makes a material change in the mailing address, office, or procedures for handling borrower payments, and that change causes a material delay in the crediting of a borrower payment made during the 60-day period following the date on which that change took effect, the person engaged in servicing the student loan shall not impose on the borrower any negative consequences related to that material change, including negative credit reporting, lost eligibility for a borrower benefit, late fees, interest capitalization, or other financial injury. (c) (1) Inquire of a borrower how to apply an overpayment to a student loan. A borrower’s direction on how to apply an overpayment to a student loan shall be effective with respect to future overpayments during the term of a student loan until the borrower provides a different direction. (2) (A) In the absence of a direction provided by a borrower pursuant to paragraph (1), allocate an overpayment on a student loan account in a manner that is in the best financial interest of a student loan borrower. (B) As used in this paragraph, “best financial interest of a student loan borrower” means reducing the total cost of the student loan, including principal balance, interest, and fees. (3) A student loan servicer shall be considered to meet the requirements of paragraph (2) if the servicer allocates the overpayment to the loan with the highest interest rate on the borrower’s student loan account, unless the borrower specifies otherwise. (d) (1) Except as provided in federal law or required by a student loan agreement, comply with a direction provided by a borrower as to how to allocate a partial payment to a student loan. (2) In the absence of a direction provided by a borrower pursuant to paragraph (1) of this subdivision, allocate a partial payment in a manner that minimizes late fees and negative credit reporting. (3) A student loan servicer shall be considered to have satisfied paragraph (2) if, when there are multiple loans on a borrower’s student loan account at an equal stage of delinquency, the student loan servicer allocates partial payments to satisfy as many loans as possible on a borrower’s student loan account. (e) (1) If a student loan servicer imposes a fee on a borrower for a past due student loan payment, that fee shall be reasonable and proportional to the total costs incurred as a result of the late payment by a borrower, and shall not exceed 6 percent of any amount past due. (2) A student loan servicer shall not impose a minimum late fee. For purposes of this paragraph, “minimum late fee” includes any fee that is not assessed as a percentage of any amount past due. (f) Diligently oversee its service providers. For purposes of this subdivision, “diligently oversee its service providers” includes maintaining policies and procedures to oversee compliance by third-party service providers engaged in any aspect of student loan servicing. Student loan servicers have joint and several liability for the conduct of their service providers for any act or practice that violates this title. (g) (1) Timely process its paperwork, consistent with existing federal requirements, including, but not limited to, ensuring that customer service personnel have received both of the following: (A) Appropriate training about the handling of paperwork. (B) Access to necessary information about forms and applications that are in process, have been approved, or have been denied. (2) The requirements of this subdivision include ensuring that customer service personnel have access to applications for income-driven repayment plans and other forms required to access benefits and protections for federal student loans, as described in Section 1070 and following of Title 20 of the United States Code. (h) Except as required by a student loan agreement, all records about a borrower’s account shall be maintained for the period of time during which a person performs student loan servicing for a borrower’s account and for a minimum of three years after the loan serviced has been paid in full, assigned to collection, or the servicing rights have been transferred. (i) Treat a qualified request as if it were a qualified written request and comply with subdivision (t) with respect to that qualified request. (j) Maintain policies and procedures permitting a borrower who is dissatisfied with the outcome of an initial qualified request to escalate the borrower’s concern to a supervisor. (k) (1) Protect borrowers from any negative consequences that are directly related to the issue identified in a borrower’s qualified request or qualified written request until that request has been resolved. For purposes of this subdivision, “negative consequences” include, but are not limited to, negative credit reporting, lost eligibility for a borrower benefit, late fees, interest capitalization, or other financial injury. (2) Notwithstanding paragraph (1), after receipt of a qualified request or qualified written request related to a dispute on a borrower’s payment on a student loan, a student loan servicer shall not, for 60 days, furnish information to a consumer reporting agency regarding a payment that is the subject of the qualified request or the qualified written request. (l) Protect borrowers from any negative consequences stemming from a sale, assignment, transfer, system conversion, or payment made by the borrower to the original student loan servicer consistent with the original student loan servicer’s policy. For purposes of this subdivision, “negative consequences” include, but are not limited to, any of the following: (1) Negative credit reporting. (2) The imposition of late fees not required by the promissory note. (3) Loss of or denial of eligibility for any benefit or protection established under federal law or included in a loan contract. (m) If the sale, assignment, or other transfer of the servicing of a student loan results in a change in the identity of the party to whom the borrower is required to send payments or direct any communications concerning the student loan, the student loan servicer shall notify the borrower in writing at least 15 days before the borrower is required to send a payment on the student loan of all of the following: (1) The identity of the new student loan servicer and the number of the license, issued by the commissioner, of the new student loan servicer. (2) The name and address of the new student loan servicer to whom subsequent payments or communications are required to be sent. (3) The telephone numbers and internet websites of the new student loan servicer. (4) The effective date of the sale, assignment, or transfer. (5) The date on which the current student loan servicer will stop accepting payments on the borrower’s student loan. (6) The date on which the new student loan servicer will begin accepting payments on the borrower’s student loan. (n) Ensure all necessary information regarding a borrower, a borrower’s account, and a borrower’s student loan accompanies a loan when it transfers to a new student loan servicer within 45 calendar days of the effective date of the sale, assignment, or transfer. For purposes of this subdivision, “necessary information” shall include, at minimum, all of the following: (1) A schedule of all transactions credited or debited to the student loan account. (2) A copy of the promissory note for the student loan. (3) Any notes created by the student loan servicer’s personnel reflecting communications with the borrower about the student loan account. (4) A report of the data fields relating to the borrower’s student loan account created by the student loan servicer’s electronic systems in connection with servicing practices. (5) Copies or electronic records of any information or documents provided by the borrower to the student loan servicer. (6) Usable data fields with information necessary to assess qualification for forgiveness, including public service loan forgiveness, if applicable. (7) Any information necessary to compile a payment history. (o) Provide specialized training for any customer service personnel that advises military borrowers about student loan repayment benefits and protections. (p) Provide specialized training for any customer service personnel that advises borrowers working in public service about student loan repayment benefits and protections. (q) Provide specialized training for any customer service personnel that advises older borrowers about risks specifically applicable to older borrowers to ensure that, once identified, older borrowers are informed about student loan repayment benefits and protections, including disability discharge programs for private and federal loans, if applicable, and, to the extent an older borrower serves as cosigner, about cosigner release provisions in private student loan contracts. (r) Provide specialized training for any customer service personnel that advises borrowers with disabilities about student loan repayment benefits and protections, including disability discharge programs for private and federal loans. Under no circumstances shall a person engage in any unfair or deceptive practice toward any borrower with a disability or misrepresent or omit any material information in connection with the servicing of a student loan owed by a borrower with a disability. For purposes of this subdivision, “misrepresent or omit any material information” includes, but is not limited to, misrepresenting or omitting any of the following: (1) The availability of any program or protection specific to borrowers with disabilities or applicable to those borrowers. (2) The amount, nature, or terms of any fee or payment due or claimed to be due on a student loan. (3) The terms and conditions of the student loan agreement. (4) The borrower’s obligations under the student loan. (s) Respond within 10 business days to communications from the Student Loan Ombudsman, established pursuant to Chapter 4 (commencing with Section 1788.104), or within a shorter, reasonable time as the Student Loan Ombudsman may request in that person’s communication. (t) (1) Respond to a qualified written request by acknowledging receipt of the request within 10 business days and within 30 business days, provide information relating to the request and, if applicable, either the action the student loan servicer will take to correct the account or an explanation for the position that the borrower’s account is correct. (2) The 30-day period described in paragraph (1) may be extended for not more than 15 days if, before the end of the 30-day period, the student loan servicer notifies the borrower of the extension and the reason for the delay in responding. (Amended by Stats. 2021, Ch. 124, Sec. 5. (AB 938) Effective January 1, 2022.)
  149. 1788.103.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 3. Enforcement of the Student Borrower Bill of Rights [1788.103- 1788.103.] ( Chapter 3 added by Stats. 2020, Ch. 154, Sec. 2. )

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    Student loan servicers must comply with this title and applicable federal servicing laws. Consumers who are harmed may sue for damages or injunctive relief, but only after giving written notice and waiting at least 45 days.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 3. Enforcement of the Student Borrower Bill of Rights [1788.103- 1788.103.] ( Chapter 3 added by Stats. 2020, Ch. 154, Sec. 2. ) ## 1788.103. (a) A student loan servicer shall do both of the following: (1) Comply with this title. (2) Comply with all applicable federal laws relating to student loan servicing, as from time to time amended, and the regulations promulgated thereunder. (b) Any consumer who suffers damage as a result of the failure of a student loan servicer to comply with paragraph (1) or (2) of subdivision (a) may, subject to the requirements of subdivisions (d) to (g), inclusive, bring an action on that consumer’s behalf and on behalf of a similarly situated class of consumers against that student loan servicer to recover or obtain any of the following: (1) Actual damages, but in no case, shall the total award of damages be less than five hundred dollars ($500) per plaintiff, per violation. (2) An order enjoining the methods, acts, or practices. (3) Restitution of property. (4) Punitive damages. (5) Attorney’s fees. (6) Any other relief that the court deems proper. (c) In addition to any other remedies provided by this subdivision or otherwise provided by law, whenever it is proven by a preponderance of the evidence that a student loan servicer has engaged in conduct that substantially interferes with a borrower’s right to an alternative payment arrangement; loan forgiveness, cancellation, or discharge; or any other financial benefit as established under the terms of a borrower’s promissory note or under the Higher Education Act of 1965 (20 U.S.C. Sec. 1070a et seq.), as from time to time amended, and the regulations promulgated thereunder, the court shall award treble actual damages to the plaintiff, but in no case shall the award of damages be less than one thousand five hundred dollars ($1,500) per plaintiff, per violation. (d) (1) At least 45 days before bringing an action for damages or injunctive relief pursuant to this chapter, a consumer shall do all of the following: (A) Provide written notice to the person alleged to have violated subdivision (a) regarding the nature of the alleged violations. (B) Demand that the person correct and remedy the method, acts, or practices to which the notice required by subparagraph (A) refers. (2) The notice required by this subdivision shall be sent by certified or registered mail, return receipt requested, to the person’s address on file with the Department of Financial Protection and Innovation or to the person’s principal place of business within California. (e) An action for damages or injunctive relief brought by a consumer only on that consumer’s behalf may not be maintained under subdivision (b) upon a showing by a person that an appropriate correction and remedy is given, or agreed to be given within a reasonable time, to the consumer within 30 days after receipt of the notice. (f) An action for damages brought by a consumer on both the consumer’s behalf and on behalf of a similarly situated class of consumers may not be maintained under subdivision (b) upon a showing by a person alleged to have employed or committed methods, acts, or practices declared unlawful that all of the following are true: (1) All consumers similarly situated have been identified, or a reasonable effort to identify those other consumers has been made. (2) All consumers so identified have been notified that, upon their request, the person shall make the appropriate correction and remedy. (3) The correction and remedy requested by the consumers has been, or, in a reasonable time, will be, given. (4) The person has ceased from engaging, or if immediate cessation is impossible or unreasonably expensive under the circumstances, the person will, within a reasonable time, cease to engage, in the methods, act, or practices. (g) Attempts to comply with a demand described in paragraph (2) of subdivision (d) by a person receiving that demand shall be construed to be an offer to compromise and shall be inadmissible as evidence pursuant to Section 1152 of the Evidence Code. Furthermore, these attempts to comply with a demand shall not be considered an admission of engaging in an act or practice declared unlawful by subdivision (a). Evidence of compliance or attempts to comply with this section may be introduced by a defendant for the purpose of establishing good faith or to show compliance with subdivision (a). (h) An award of damages shall not be given in an action based on a method, act, or practice in violation of subdivision (a) if the person alleged to have employed or committed that method, act, or practice does both of the following: (1) Proves by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the use of reasonable procedures adopted to avoid that error. (2) Makes an appropriate correction, repair, replacement, or other remedy according to the provisions of subdivisions (d) and (e) as required by law. (i) The commissioner shall administer and enforce the provisions of this title and may promulgate rules and regulations and issue orders consistent with that authority. (1) The commissioner shall have the authority to carry over any regulations issued pursuant to the Student Loan Servicing Act in order to implement equivalent provisions of this act. (2) Any rules issued pursuant to the Student Loan Servicing Act in effect at the time of enactment of this act shall remain in effect until the commissioner repeals or reissues those regulations. (Amended by Stats. 2022, Ch. 452, Sec. 21. (SB 1498) Effective January 1, 2023.)
  150. 1788.104.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 4. Establishment of The California Student Loan Ombudsman [1788.104- 1788.104.] ( Chapter 4 added by Stats. 2020, Ch. 154, Sec. 2. )

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    This section creates a Student Loan Ombudsman, sets a deadline to designate the ombudsman, and requires complaint handling, information-sharing, and reporting duties.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 4. Establishment of The California Student Loan Ombudsman [1788.104- 1788.104.] ( Chapter 4 added by Stats. 2020, Ch. 154, Sec. 2. ) ## 1788.104. (a) Not later than 180 days following the operative date of this chapter, the commissioner shall designate a Student Loan Ombudsman to work within the department. The Student Loan Ombudsman shall hire additional staff as necessary to implement this section. (b) The Student Loan Ombudsman shall receive and review complaints from student loan borrowers. (c) Any complaint regarding a student loan servicer licensed or subject to licensing under the Student Loan Servicing Act (Division 12.5 (commencing with Section 28100) of the Financial Code) shall be referred to the appropriate unit within the department. This unit may investigate complaints referred by the Student Loan Ombudsman, and from the public, who may also submit complaints directly to the department. (d) Complaints regarding student loans not subject to the Student Loan Servicing Act (Division 12.5 (commencing with Section 28100) of the Financial Code) shall be referred to the Department of Justice. The Department of Justice may investigate complaints regarding student loans referred by the Student Loan Ombudsman, and from the public, who may also submit complaints directly to the Department of Justice. (e) Complaints regarding any private postsecondary educational institution licensed by the Bureau for Private Postsecondary Education shall be referred to the Bureau for Private Postsecondary Education’s Office of Student Assistance and Relief. (f) The Student Loan Ombudsman shall confer with the Department of Justice and the Office of Student Assistance and Relief regarding the student loan complaints, the proper referral processes for those complaints, and the reporting requirements of the Student Loan Ombudsman under this title. (g) The Student Loan Ombudsman has all of the following duties: (1) Compiling and analyzing data on the number of student loan borrower complaints received by the Department of Financial Protection and Innovation and referred to the Department of Justice. (2) Providing information to the public, agencies, legislators, and others regarding the problems and concerns of student loan borrowers and making recommendations for resolving those problems and concerns. (3) Analyzing and monitoring the development and implementation of federal and state laws, rules, regulations, and policies relating to student loan borrowers. (4) Disseminating information concerning the availability of the Department of Financial Protection and Innovation, the Department of Justice, and the Bureau of Private Postsecondary Education to accept complaints from individual student loan borrowers and potential student loan borrowers. (5) Requesting and compiling information provided by any student loan servicer if reasonably determined by the Student Loan Ombudsman to be necessary to effectuate the duties described in this subdivision, except if that student loan servicer is a national bank, as defined in Section 25b of Title 12 of the United States Code, and only to the extent that the requirements of this paragraph are preempted with respect to national banks pursuant to Section 25b and following of Title 12 of the United States Code. (6) Not later than 18 months after the operative date of this chapter, and not less frequently than once per year thereafter, the Student Loan Ombudsman shall submit a report to the appropriate committees of the Legislature having jurisdiction over higher education and financial institutions. The Student Loan Ombudsman shall report on all of the following: (A) The implementation of this section. (B) The types of complaints received regarding student loan borrowing, student loan repayment and servicing, and how these complaints are resolved. (C) Other data and analysis on outstanding student loan issues faced by borrowers. (h) Notwithstanding subdivision (l) of Section 1788.100, for purposes of this chapter, “student loan servicer” includes a state or nonprofit private institution or organization having an agreement with the United States Secretary of Education under the Higher Education Act of 1965 (20 U.S.C. Sec. 1078(b)) in connection with its responsibilities as a guaranty agency engaged in default aversion. (i) The operation of this chapter is contingent upon the enactment of an appropriation in the annual Budget Act for its purposes. (j) This chapter shall become operative on July 1, 2021. (Amended by Stats. 2022, Ch. 452, Sec. 22. (SB 1498) Effective January 1, 2023.)
  151. 1788.105.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 5. Shining a Spotlight on Student Loan Industry Practices [1788.105 - 1788.106] ( Chapter 5 added by Stats. 2020, Ch. 154, Sec. 2. )

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    The commissioner may monitor student loan servicing risks and gather related information, including requiring reports from covered servicers.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 5. Shining a Spotlight on Student Loan Industry Practices [1788.105 - 1788.106] ( Chapter 5 added by Stats. 2020, Ch. 154, Sec. 2. ) ## 1788.105. (a) The commissioner may monitor for risks to consumers in the provision of student loan servicing in this state, including developments in the market for those services, by compiling and analyzing data and other information based on any of the following considerations: (1) The likely risks and costs to consumers associated with using or repaying a student loan or with the servicing of a student loan. (2) The understanding by consumers of the risks of a student loan or the servicing of a student loan. (3) The legal protections applicable to the offering or provision of a student loan or the servicing of a student loan, including the extent to which the law is likely to adequately protect consumers. (4) The rates of growth in the offering or provision of a student loan or the servicing of that loan. (5) The extent, if any, to which the risks of a student loan or the servicing of a student loan disproportionately affect traditionally underserved consumers. (6) The type, number, and other pertinent characteristics of student loan servicers in this state. (b) In conducting any monitoring or assessment authorized by this section, the commissioner may gather information regarding the organization, business conduct, markets, and activities of student loan servicers in this state, except if that student loan servicer is a national bank, as defined in Section 25b of Title 12 of the United States Code, and only to the extent that the requirements of this paragraph are preempted with respect to national banks pursuant to Section 25b and following of Title 12 of the United States Code. The commissioner may enter into contracts to perform the duties required in this section, as necessary. (c) In order to gather information described in subdivision (b), the commissioner may do both of the following: (1) Gather and compile information from a variety of sources, including consumer complaints, voluntary surveys and voluntary interviews of consumers, surveys and interviews with student loan servicers and service providers, and review of available databases. (2) Require persons engaged in student loan servicing and licensed or subject to the licensing requirements of the Student Loan Servicing Act (Division 12.5 (commencing with Section 28100) of the Financial Code) to file, under oath or otherwise, in the form and within a reasonable period of time as the commissioner may prescribe, annual or special reports, or answers in writing to specific questions, as necessary for the commissioner to fulfill the monitoring, assessment, and reporting responsibilities required in this title. (d) (1) In addition to any other market monitoring activities deemed necessary by the commissioner, pursuant to subdivision (a), the department may gather and compile information from student loan servicers to assemble data that assesses the total size of the student loan market in this state, the servicing of loans owed by borrowers at risk of default, the servicing of private student loans owed by borrowers experiencing financial distress, and the servicing of federal student loans for borrowers who seek to repay their loans under an Income Driven Repayment Plan as described in Section 1070 et seq. of Title 20 of the United States Code. (2) The commissioner may, on a quarterly basis, develop and publicize metrics based on data collected pursuant to this subdivision, and those metrics may identify each student loan servicer and publish relevant metrics related to performance of student loan servicing by each person. In executing the function described in this subdivision, the commissioner may meet and confer with the Student Loan Ombudsman established pursuant to Chapter 4. (e) Notwithstanding subdivision (l) of Section 1788.100, for purposes of this chapter, “student loan servicer” includes a state or nonprofit private institution or organization having an agreement with the United States Secretary of Education under the Higher Education Act of 1965 (20 U.S.C. Sec. 1078(b)) in connection with its responsibilities as a guaranty agency engaged in default aversion. (f) This chapter shall become operative on July 1, 2021. (g) The operation of this chapter is contingent upon the enactment of an appropriation in the annual Budget Act for its purposes. (Amended by Stats. 2021, Ch. 124, Sec. 6. (AB 938) Effective January 1, 2022.)
  152. 1788.106.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 5. Shining a Spotlight on Student Loan Industry Practices [1788.105 - 1788.106] ( Chapter 5 added by Stats. 2020, Ch. 154, Sec. 2. )

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    A waiver of any provision of this title is against public policy and has no legal effect.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.10. Student Loans: Borrower Rights [1788.100 - 1788.106] ( Title 1.6C.10 added by Stats. 2020, Ch. 154, Sec. 2. ) ## CHAPTER 5. Shining a Spotlight on Student Loan Industry Practices [1788.105 - 1788.106] ( Chapter 5 added by Stats. 2020, Ch. 154, Sec. 2. ) ## 1788.106. Any waiver of a provision of this title is contrary to public policy and is void and unenforceable. (Added by Stats. 2024, Ch. 853, Sec. 14. (AB 3281) Effective January 1, 2025.)
  153. 1788.11.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors may not use listed collection practices for covered debts, and must give a California debt collector license number on a consumer’s request if applicable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.11. No debt collector shall collect or attempt to collect a covered debt by means of the following practices: (a) Using obscene or profane language. (b) Placing a telephone call without disclosing the caller’s identity, provided that an employee of a licensed collection agency may identify oneself by using their registered alias name if they correctly identify the agency that they represent. A debt collector shall provide its California debt collector license number, if applicable, upon the consumer’s request. (c) Causing expense to any person for long distance telephone calls, telegram fees, or charges for other similar communications, by misrepresenting to the person the purpose of the telephone call, telegram or similar communication. (d) Causing a telephone to ring repeatedly or continuously to annoy the person called. (e) Communicating, by telephone or in person, with the debtor with such frequency as to be unreasonable, and to constitute harassment of the debtor under the circumstances. (f) Sending written or digital communication to the person that does not display the California license number of the collector, if applicable, in at least 12-point type. (Amended by Stats. 2024, Ch. 522, Sec. 4. (SB 1286) Effective January 1, 2025.)
  154. 1788.12.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors are barred from using certain collection tactics, including contacting an employer or family members about a consumer debt, publishing debtor lists, or using embarrassing written communications.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.12. No debt collector shall collect or attempt to collect a covered debt or consumer debt, as specified, by means of the following practices: (a) Communicating with the debtor’s employer regarding the debtor’s consumer debt unless such a communication is necessary to the collection of the consumer debt, or unless the debtor or their attorney has consented in writing to that communication. A communication is necessary to the collection of the consumer debt only if it is made for the purposes of verifying the debtor’s employment, locating the debtor, or effecting garnishment, after judgment, of the debtor’s wages, or in the case of a medical debt for the purpose of discovering the existence of medical insurance. Any such communication, other than a communication in the case of a medical debt by a health care provider or its agent for the purpose of discovering the existence of medical insurance, shall be in writing unless that written communication receives no response within 15 days and shall be made only as many times as is necessary to the collection of the consumer debt. Communications to a debtor’s employer regarding a consumer debt shall not contain language that would be improper if the communication were made to the debtor. One communication solely for the purpose of verifying the debtor’s employment may be oral without prior written contact. (b) Communicating information regarding a consumer debt to any member of the debtor’s family, other than the debtor’s spouse or the parents or guardians of the debtor who is either a minor or who resides in the same household with that parent or guardian, prior to obtaining a judgment against the debtor, except where the purpose of the communication is to locate the debtor, or where the debtor or their attorney has consented in writing to that communication. (c) Communicating to any person any list of debtors that discloses the nature or existence of a covered debt, commonly known as “deadbeat lists,” or advertising any covered debt for sale, by naming the debtor. (d) Communicating with the debtor by means of a written communication that displays or conveys any information about the covered debt or the debtor other than the name, address, and telephone number of the debtor and the debt collector and that is intended both to be seen by any other person and also to embarrass the debtor. (e) Notwithstanding the foregoing provisions of this section, the disclosure, publication, or communication by a debt collector of information relating to a covered debt or the debtor to a consumer reporting agency or to any other person reasonably believed to have a legitimate business need for that information shall not be deemed to violate this title. (Amended by Stats. 2024, Ch. 522, Sec. 5. (SB 1286) Effective January 1, 2025.)
  155. 1788.13.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors are barred from using specified deceptive practices to collect a covered debt.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.13. No debt collector shall collect or attempt to collect a covered debt by means of the following practices: (a) Any communication with the debtor other than in the name either of the debt collector or the person on whose behalf the debt collector is acting. (b) Any false representation that any person is an attorney or counselor at law. (c) Any communication with a debtor in the name of an attorney or counselor at law or upon stationery or like written instruments bearing the name of the attorney or counselor at law, unless that communication is by an attorney or counselor at law or shall have been approved or authorized by that attorney or counselor at law. (d) The representation that any debt collector is vouched for, bonded by, affiliated with, or is an instrumentality, agent or official of any federal, state or local government or any agency of federal, state or local government, unless the collector is actually employed by the particular governmental agency in question and is acting on behalf of that agency in the debt collection matter. (e) The false representation that the covered debt may be increased by the addition of attorney’s fees, investigation fees, service fees, finance charges, or other charges if, in fact, those fees or charges may not legally be added to the existing obligation. (f) The false representation that information concerning a debtor’s failure or alleged failure to pay a covered debt has been or is about to be referred to a consumer reporting agency. (g) The false representation that a debt collector is a consumer reporting agency. (h) The false representation that collection letters, notices or other printed forms are being sent by or on behalf of a claim, credit, audit, or legal department. (i) The false representation of the true nature of the business or services being rendered by the debt collector. (j) The false representation that a legal proceeding has been, is about to be, or will be instituted unless payment of a covered debt is made. (k) The false representation that a covered debt has been, is about to be, or will be sold, assigned, or referred to a debt collector for collection. (l) Any communication by a collection agency to a debtor demanding money unless the claim is actually assigned to the collection agency. (Amended by Stats. 2024, Ch. 522, Sec. 6. (SB 1286) Effective January 1, 2025.)
  156. 1788.14.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors are barred from using several collection practices, including certain bankruptcy-related affirmations, improper fee collection, contacting represented debtors in some cases, and sending time-barred debt letters without required notices; hospital debt collection also has a 180-day waiting statement requirement.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.14. No debt collector shall collect or attempt to collect a covered debt by means of the following practices: (a) Obtaining an affirmation from a debtor of a covered debt that has been discharged in bankruptcy, without clearly and conspicuously disclosing to the debtor, in writing, at the time the affirmation is sought, the fact that the debtor is not legally obligated to make an affirmation. (b) Collecting or attempting to collect from the debtor the whole or any part of the debt collector’s fee or charge for services rendered, or other expense incurred by the debt collector in the collection of the covered debt, except as permitted by law. (c) Initiating communications, other than statements of account, with the debtor with regard to the covered debt, when the debt collector has been previously notified in writing by the debtor’s attorney that the debtor is represented by the attorney with respect to the covered debt and the notice includes the attorney’s name and address and a request by the attorney that all communications regarding the covered debt be addressed to the attorney, unless the attorney fails to answer correspondence, return telephone calls, or discuss the obligation in question. This subdivision shall not apply if prior approval has been obtained from the debtor’s attorney, or if the communication is a response in the ordinary course of business to a debtor’s inquiry. (d) Sending a written communication to a debtor in an attempt to collect a time-barred debt without providing the debtor with one of the following written notices: (1) If the debt is not past the date for obsolescence set forth in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c), the following notice shall be included in the first written communication provided to the debtor after the debt has become time-barred: “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it. If you do not pay the debt, [insert name of debt collector] may [continue to] report it to the credit reporting agencies as unpaid for as long as the law permits this reporting.” (2) If the debt is past the date for obsolescence set forth in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c), the following notice shall be included in the first written communication provided to the debtor after the date for obsolescence: “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, and we will not report it to any credit reporting agency.” (e) Collecting consumer debt that originated with a hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code without including in the first written communication to the debtor a copy of the notice required pursuant to subdivision (e) of Section 127425 of the Health and Safety Code and a statement that the debt collector will wait at least 180 days from the date the debtor was initially billed for the hospital services that are the basis of the debt before filing a lawsuit against the debtor. (f) For purposes of this section, “first written communication” means the first communication sent to the debtor in writing or by facsimile, email, or other similar means. (Amended by Stats. 2024, Ch. 522, Sec. 7.5. (SB 1286) Effective January 1, 2025.)
  157. 1788.14.5.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    A covered debt collector assigned delinquent debt must give the debtor certain debt information on written request, send a required notice in its first written communication, and stop collecting if it cannot provide the information within 30 days.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.14.5. (a) A debt collector to which delinquent debt has been assigned shall provide to the debtor, upon the debtor’s written request, a statement that includes all of the following information pursuant to subdivision (c): (1) That the debt collector has authority to assert the rights of the creditor to collect the debt. (2) (A) The debt balance and an explanation of the amount, nature, and reason for all interest and fees, if any, imposed by the creditor or any subsequent entities to which the debt was assigned. (B) The explanation required by subparagraph (A) shall identify separately the balance, the total of any interest, and the total of any fees. (3) The date the debt became delinquent or the date of the last payment. (4) The name and an address of the creditor and the creditor’s account number associated with the debt. The creditor’s name and address shall be in sufficient form so as to reasonably identify the creditor. (5) The name and last known address of the debtor as they appeared in the creditor’s records before the assignment of the debt to the debt collector. (6) The names and addresses of all persons or entities other than the debt collector to which the debt was assigned. The names and addresses shall be in sufficient form so as to reasonably identify each assignee. (7) The California license number of the debt collector, if applicable. (b) A debt collector to which delinquent debt has been assigned shall not make a written statement to a debtor in an attempt to collect a delinquent debt unless the debt collector has access to a copy of a contract or other document evidencing the debtor’s agreement to the debt, except in the following circumstances: (1) If the claim is based on debt for which no signed contract or agreement exists, the debt collector shall have access to a copy of a document provided to the debtor while the account was active, demonstrating that the debt was incurred by the debtor. (2) For a revolving credit account, the most recent monthly statement recording a purchase transaction, last payment, or balance transfer shall be deemed sufficient to satisfy the requirements of this subparagraph. (c) (1) A debt collector to which delinquent debt has been assigned shall provide the information or documents identified in subdivisions (a) and (b) to the debtor without charge within 30 calendar days of receipt of a debtor’s written request for information regarding the debt or proof of the debt. (2) If the debt collector cannot provide the information or documents within 30 calendar days, the debt collector shall cease all collection of the debt until the debt collector provides the debtor the information or documents described in subdivisions (a) and (b). (d) (1) A debt collector shall provide a debtor with whom it has contact an active postal address to which a debtor may send a request for the information described in this section. (2) A debt collector may also provide an active email address to which these requests can be sent and through which information and documents can be delivered if the parties agree. (e) (1) A debt collector to which delinquent debt has been assigned shall include in its first written communication with the debtor in no smaller than 12-point type, a separate prominent notice that contains the following statement: “You may request records showing the following: (1) that [insert name of debt collector] has the right to seek collection of the debt; (2) the debt balance, including an explanation of any interest charges and additional fees; (3) the date the debt became delinquent or the date of the last payment; (4) the name of the creditor and the account number associated with the debt; (5) the name and last known address of the debtor as it appeared in the creditor’s records prior to assignment of the debt; and (6) the names of all persons or entities other than the debt collector to which the debt has been assigned, if applicable. You may also request from us a copy of the contract or other document evidencing your agreement to the debt. A request for these records may be addressed to: [insert debt collector’s active mailing address and email address, if applicable].” (2) If a language other than English is principally used by the debt collector in the initial oral contact with the debtor, the notice required by this subdivision shall be provided to the debtor in that language within five business days. (f) (1) A debt buyer that complies with the requirements of Section 1788.52 shall be deemed to be in compliance with this section. (2) For purposes of this subdivision, “debt buyer” shall have the same meaning as in Section 1788.50. (g) For the purposes of this section, the term “delinquent debt” means a covered debt, other than a mortgage debt, that is past due at least 90 days and has not been charged off. (h) This section shall apply to all delinquent consumer debt sold or assigned on or after July 1, 2022. (i) This section shall apply to all delinquent covered commercial debt sold or assigned on or after July 1, 2025. (Amended by Stats. 2024, Ch. 522, Sec. 8. (SB 1286) Effective January 1, 2025.)
  158. 1788.15.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors are barred from using judicial proceedings to collect a covered debt in certain situations, but may do so for a covered commercial debt guaranty in a specified county.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.15. (a) No debt collector shall collect or attempt to collect a covered debt by means of judicial proceedings when the debt collector knows that service of process, where essential to jurisdiction over the debtor or their property, has not been legally effected. (b) No debt collector shall collect or attempt to collect a covered debt, other than one reduced to judgment, by means of judicial proceedings in a county other than the county in which the debtor has incurred the covered debt or the county in which the debtor resides at the time those proceedings are instituted, or resided at the time the debt was incurred. (c) Notwithstanding subdivision (b), when the obligation of the debtor arises from a guaranty by the debtor of a covered commercial debt, a debt collector may collect or attempt to collect covered commercial debt by means of a judicial proceeding in the county in which the nonnatural person for whose purpose the commercial debt was incurred is located. (d) This section shall apply to all delinquent covered commercial debt sold or assigned on or after July 1, 2025. (Amended by Stats. 2024, Ch. 522, Sec. 9. (SB 1286) Effective January 1, 2025.)
  159. 1788.16.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors, creditors, and attorneys may not send deceptive communications that look like legal or government-approved process when collecting a covered debt.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.16. It is unlawful, with respect to attempted collection of a covered debt, for a debt collector, creditor, or an attorney to send a communication that simulates legal or judicial process or that gives the appearance of being authorized, issued, or approved by a governmental agency or attorney when it is not. Any violation of the provisions of this section is a misdemeanor punishable by imprisonment in the county jail not exceeding six months, or by a fine not exceeding two thousand five hundred dollars ($2,500) or by both. (Amended by Stats. 2024, Ch. 522, Sec. 10. (SB 1286) Effective January 1, 2025.)
  160. 1788.17.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    Debt collectors collecting or trying to collect consumer debt must follow specified federal debt collection rules and are subject to the listed federal remedies, with a stated exception for certain persons and their principals.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.17. Notwithstanding any other provision of this title, every debt collector collecting or attempting to collect a consumer debt shall comply with the provisions of Sections 1692b to 1692j, inclusive, of, and shall be subject to the remedies in Section 1692k of, Title 15 of the United States Code. However, subsection (11) of Section 1692e and Section 1692g shall not apply to any person specified in paragraphs (A) and (B) of subsection (6) of Section 1692a of Title 15 of the United States Code or that person’s principal. The references to federal codes in this section refer to those codes as they read January 1, 2001. (Amended by Stats. 2024, Ch. 522, Sec. 11. (SB 1286) Effective January 1, 2025.)
  161. 1788.18.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    A debt collector must stop collection activity when it receives the required identity-theft materials, review the dispute, and give notices within stated deadlines.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.18. (a) Upon receipt from a debtor of all of the following, a debt collector shall cease collection activities until completion of the review provided in subdivision (d): (1) A copy of a Federal Trade Commission (FTC) identity theft report, completed and signed by the debtor. The debtor may choose, instead, to send a copy of a police report filed by the debtor alleging that the debtor is the victim of an identity theft crime, including, but not limited to, a violation of Section 530.5 of the Penal Code, for the specific debt being collected by the debt collector; however, the debt collector shall not also require a police report if the debtor submits an FTC identity theft report. (2) The debtor’s written statement that the debtor claims to be the victim of identity theft with respect to the specific debt being collected by the debt collector. (b) The written statement described in paragraph (2) of subdivision (a) shall consist of either of the following: (1) A written statement that contains the content of the Identity Theft Victim’s Fraudulent Account Information Request offered to the public by the California Office of Privacy Protection. (2) A written statement that certifies that the representations are true, correct, and contain no material omissions of fact to the best knowledge and belief of the person submitting the certification. A person submitting the certification who declares as true any material matter pursuant to this subdivision that they know to be false is guilty of a misdemeanor. The statement shall contain or be accompanied by the following, to the extent that an item listed below is relevant to the debtor’s allegation of identity theft with respect to the debt in question: (A) A statement that the debtor is a victim of identity theft. (B) A copy of the debtor’s driver’s license or identification card, as issued by the state. (C) Any other identification document that supports the statement of identity theft. (D) Specific facts supporting the claim of identity theft, if available. (E) Any explanation showing that the debtor did not incur the debt. (F) Any available correspondence disputing the debt after transaction information has been provided to the debtor. (G) Documentation of the residence of the debtor at the time of the alleged debt. This may include copies of bills and statements, such as utility bills, tax statements, or other statements from businesses sent to the debtor, showing that the debtor lived at another residence at the time the debt was incurred. (H) A telephone number for contacting the debtor concerning any additional information or questions, or direction that further communications to the debtor be in writing only, with the mailing address specified in the statement. (I) To the extent the debtor has information concerning who may have incurred the debt, the identification of any person whom the debtor believes is responsible. (J) An express statement that the debtor did not authorize the use of the debtor’s name or personal information for incurring the debt. (K) The certification required pursuant to this paragraph shall be sufficient if it is in substantially the following form: “I certify the representations made are true, correct, and contain no material omissions of fact. _____ (Date and Place) _____ _____ (Signature) _____ ” (c) If a debtor notifies a debt collector orally that they are a victim of identity theft, the debt collector shall notify the debtor, orally or in writing, that the debtor’s claim must be in writing. If a debtor notifies a debt collector in writing that they are a victim of identity theft, but omits information required pursuant to subdivision (a) or, if applicable, the certification required pursuant to paragraph (2) of subdivision (b), if the debt collector does not cease collection activities, the debt collector shall provide written notice to the debtor of the additional information that is required, or the certification required pursuant to paragraph (2) of subdivision (b), as applicable, or send the debtor a copy of the Federal Trade Commission’s identity theft form. (d) Within 10 business days of receiving the complete statement and information described in subdivision (a), the debt collector shall, if it furnished adverse information about the debtor to a consumer credit reporting agency, notify the consumer credit reporting agency that the account is disputed, and initiate a review considering all of the information provided by the debtor and other information available to the debt collector in its file or from the creditor. The debt collector shall send notice of its determination to the debtor no later than 10 business days after concluding the review. The debt collector may recommence debt collection activities only upon making a good faith determination that the information does not establish that the debtor is not responsible for the specific debt in question. The debt collector’s determination shall be made in a manner consistent with the provisions of subsection (1) of Section 1692f of Title 15 of the United States Code, as incorporated by Section 1788.17 of this code. The debt collector shall notify the debtor in writing of that determination and the basis for that determination before proceeding with any further collection activities. The debt collector’s determination shall be based on all of the information provided by the debtor and other information available to the debt collector in its file or from the creditor. (e) No inference or presumption that the debt is valid or invalid, or that the debtor is liable or not liable for the debt, shall arise if the debt collector decides after the review described in subdivision (d) to cease or recommence the debt collection activities. The exercise or nonexercise of rights under this section is not a waiver of any other right or defense of the debtor or debt collector. (f) The statement and supporting documents that comply with subdivision (a) may also satisfy, to the extent those documents meet the requirements of, the notice requirement of paragraph (5) of subdivision (c) of Section 1798.93. (g) A debt collector who ceases collection activities under this section and does not recommence those collection activities shall do both of the following: (1) If the debt collector has furnished adverse information to a consumer credit reporting agency, notify the agency to delete that information no later than 10 business days after making its determination. (2) Notify the creditor no later than 10 business days after making its determination that debt collection activities have been terminated based upon the debtor’s claim of identity theft. (h) A debt collector who has possession of documents that the debtor is entitled to request from a creditor pursuant to Section 530.8 of the Penal Code is authorized to provide those documents to the debtor. (i) Notwithstanding subdivision (h) of Section 1788.2, for the purposes of this section, “debtor” means a natural person, firm, association, organization, partnership, business trust, company, corporation, or limited liability company from which a debt collector seeks to collect a debt that is due and owing or alleged to be due and owing from the person or entity. The remedies provided by this title shall apply equally to violations of this section. (Amended by Stats. 2024, Ch. 522, Sec. 12. (SB 1286) Effective January 1, 2025.)
  162. 1788.185.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. )

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    For certain hospital debt collection cases, the complaint must include specific allegations and attached records, and the plaintiff must redact protected information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 2. Debt Collector Responsibilities [1788.10 - 1788.185] ( Article 2 added by Stats. 1977, Ch. 907. ) ## 1788.185. (a) The complaint in an action brought by a debt collector for debt that originated with a general acute care hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code shall allege all of the following: (1) That the plaintiff is a debt collector. (2) That the underlying debt originated with a general acute care hospital. (3) The information contained in paragraph (6) of subdivision (e) of Section 127425 of the Health and Safety Code and a statement identifying the language in which that information was sent to the debtor. (4) The balance of the debt upon assignment to the debt collector and an explanation of the amount, nature, and reason for any interest and fees that are added to the debt balance by the debt collector after the assignment of the debt. This paragraph shall not be deemed to require a specific itemization, but the explanation shall identify separately the charge-off balance of the debt upon assignment to the debt collector, the total of any interest, and the total of any fees added to the debt balance by the debt collector after the assignment of the debt. (5) The date of default or the date of the last payment, and the date the debt was assigned. (6) The name and address of the hospital at the time of assignment. (7) The hospital’s account number associated with the debt. (b) Copies of the application for financial assistance that was provided to the debtor by the hospital and the notice that was provided to the debtor by the hospital about applying for financial assistance shall be attached to the complaint. If the notice was provided as part of the hospital bill that cannot be separated, the bill shall be redacted to remove confidential information or a sample hospital bill with the substance of the notice regarding financial assistance in the format in use at the time the patient was billed may be provided. (c) This title does not require the disclosure in public records of personal, financial, or medical information, the confidentiality of which is protected by state or federal law. The plaintiff shall redact protected information filed with the complaint. (d) A default or other judgment shall not be entered against a debtor for debt pursuant to this section unless business records, authenticated through a sworn declaration, are submitted by the debt collector to the court to establish the facts required to be alleged pursuant to subdivision (a). (e) If a debt collector plaintiff seeks a default judgment and has not complied with this title, the court shall not enter a default judgment for the plaintiff and may, in its discretion, dismiss the action. (f) Except as provided in this title, this section does not modify or otherwise amend the procedures established in Section 585 of the Code of Civil Procedure. (Added by Stats. 2021, Ch. 473, Sec. 2. (AB 1020) Effective January 1, 2022.)
  163. 1788.2.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. )

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    This section defines key terms used in the Fair Debt Collection Practices title, including debt collection, debt collector, debtor, creditor, consumer credit report, and covered commercial debt/credit.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. ) ## 1788.2. (a) Definitions and rules of construction set forth in this section are applicable for the purpose of this title. (b) The term “debt collection” means any act or practice in connection with the collection of covered debts. (c) The term “debt collector” means any person who, in the ordinary course of business, regularly, on behalf of that person or others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters, and other collection media used or intended to be used for debt collection. (d) The term “debt” means money, property, or their equivalent that is due or owing or alleged to be due or owing from a natural person to another person. (e) The term “consumer credit transaction” means a transaction between a natural person and another person in which property, services, or money is acquired on credit by that natural person from the other person primarily for personal, family, or household purposes. (f) The terms “consumer debt” and “consumer credit” mean money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction. The term “consumer debt” includes a mortgage debt. (g) The term “person” means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity. (h) (1) Except as provided in Section 1788.18, the term “debtor” means a natural person from whom a debt collector seeks to collect a covered debt that is due and owing or alleged to be due and owing from that person. (2) In relation to a covered commercial debt or covered commercial credit, a “debtor” shall mean a natural person who guarantees an obligation related to a covered commercial credit transaction. (i) The term “creditor” means a person who extends covered credit to a debtor. (j) The term “consumer credit report” means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for (1) credit or insurance to be used primarily for personal, family, or household purposes, or (2) employment purposes, or (3) other purposes authorized under any applicable federal or state law or regulation. The term does not include (a) any report containing information solely as to transactions or experiences between the consumer and the person making the report; (b) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or (c) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys that person’s decision with respect to that request, if the third party advises the consumer of the name and address of the person to whom the request was made, and the person makes the disclosures to the consumer required under any applicable federal or state law or regulation. (k) The term “consumer reporting agency” means any person that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer credit reports to third parties and uses any means or facility for the purpose of preparing or furnishing consumer credit reports. (l) The term “covered debt” means a consumer debt or a covered commercial debt. (m) The term “covered credit” means consumer credit or covered commercial credit. (n) (1) The terms “covered commercial debt” and “covered commercial credit” mean money due or owing or alleged to be due or owing from a natural person to a lender, a commercial financing provider, as defined in Section 22800 of the Financial Code, or a debt buyer, as defined in Section 1788.50, by reason of one or more covered commercial credit transactions, provided the total amount of all covered commercial credit transactions and all other noncovered commercial credit transactions due and owing by the debtor or other person obligated under the transactions to the same lender, commercial financing provider, or debt buyer is no more than five hundred thousand dollars ($500,000). (A) For credit owed to a lender or commercial financing provider, the total value of credit per transaction is determined as of when the transaction is first entered into and is the maximum amount that the creditor is contractually required to provide or make available to the debtor over the life of the transaction or is the maximum amount that is enumerated in an open-end credit agreement. (B) The value of credit for each transaction for a debt buyer is the amount owing or alleged to be owing to the debt buyer when the debt buyer acquires the rights of the lender or commercial financing provider in the commercial credit. (2) Notwithstanding any other provision of this section, covered commercial debt does not include either of the following: (A) Trade credit. (B) A commercial financing transaction in which the recipient is a dealer as defined by Section 285 of the Vehicle Code, or an affiliate of the dealer, pursuant to a specific commercial financing offer or commercial open-end credit plan of at least fifty thousand dollars ($50,000), including, but not limited to, a commercial loan made pursuant to that commercial financing transaction. (o) The term “covered commercial credit transaction” means a transaction between a person and another person in which a total value of no more than five hundred thousand dollars ($500,000), is acquired on credit by that person from the other person for use primarily for other than personal, family, or household purposes. (p) The term “trade credit” means an extension of credit that meets both of the following conditions: (1) The credit is extended by a person whose primary business is the furnishing or provision of goods, materials, equipment, or services. (2) The credit is extended in connection with the furnishing or provision of goods, materials, equipment, or services, unless the transaction is structured as “lease financing” as defined in Section 22800 of the Financial Code. (Amended by Stats. 2025, Ch. 200, Sec. 3. (AB 1521) Effective January 1, 2026.)
  164. 1788.20.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 3. Debtor Responsibilities [1788.20 - 1788.22] ( Article 3 added by Stats. 1977, Ch. 907. )

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    A person must not apply for covered credit when they know they probably cannot pay, do not intend to pay, or when they knowingly provide false or inaccurate information or conceal adverse information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 3. Debtor Responsibilities [1788.20 - 1788.22] ( Article 3 added by Stats. 1977, Ch. 907. ) ## 1788.20. In connection with any request or application for covered credit, no person shall: (a) Request or apply for that credit at a time when that person knows there is no reasonable probability of that person’s being able, or that person then lacks the intention, to pay the obligation created thereby in accordance with the terms and conditions of the credit extension. (b) Knowingly submit false or inaccurate information or willfully conceal adverse information bearing upon that person’s credit worthiness, credit standing, or credit capacity. (Amended by Stats. 2024, Ch. 522, Sec. 13. (SB 1286) Effective January 1, 2025.)
  165. 1788.200.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    This section names the title the Private Student Loan Collections Reform Act.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.200. This title shall be known and may be cited as the Private Student Loan Collections Reform Act. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  166. 1788.201.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    This section defines terms used in the Private Student Loan Collections Reform Act.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.201. For purposes of this title, the following definitions apply: (a) “Borrower” or “student loan borrower” means a person who has received or agreed to pay a private education loan. (b) “Consumer report” and “consumer reporting agency” shall each have the same meaning that these terms have under the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.). (c) (1) “Cosigner” means any individual who is liable for the obligation of another without compensation, regardless of how the individual is designated in the contract or instrument with respect to that obligation, including an obligation under a private education loan extended to consolidate a borrower’s preexisting private education loans, and shall include any person whose signature is requested as a condition to grant credit or to forbear on collection. (2) “Cosigner” does not include a spouse of an individual described in paragraph (1), the signature of whom is needed to perfect the security interest in a loan. (d) “Creditor” means any of the following: (1) The original creditor, where ownership of a private education loan has not been sold, assigned, or transferred. (2) The person or entity that owned the private education loan at the time the private education loan defaulted, even if that person or entity did not originate the private education loan, and where such a private education loan has not subsequently been sold, transferred, or assigned. (3) A person or entity that purchased a defaulted private education loan, whether it collects the private education loan itself or hires a third party for collection, or hires an attorney for collection litigation. (e) “Debtor” means a borrower, cosigner, or other person that owes or is alleged to owe an unpaid amount on a private education loan. (f) (1) “Exempt entity” means an entity that meets both of the following requirements: (A) It is a depository institution as defined in Section 1420 of the Financial Code. (B) It, together with its affiliates, will be, in the aggregate, a plaintiff in 35 or fewer private student loan collection actions in the current calendar year. Private education loans assigned to a third party for the purposes of collection shall count towards the numerical limit set forth in this subparagraph. (2) For purposes of this subdivision, an entity is an “affiliate” of another specified entity if it directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the other specified entity. (g) “Original creditor” means the private education lender identified in a promissory note, loan agreement, or loan contract entered into with a student loan borrower or cosigner. (h) “Private education lender” means either of the following: (1) Any person or entity engaged in the business of securing, making, or extending private education loans. (2) Any holder of a private education loan. (i) “Private education loan” means an extension of credit that meets all of the following conditions: (1) Is not made, insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. Sec. 1070 et seq.). (2) Is extended to a consumer expressly, in whole or in part, for postsecondary educational expenses, regardless of whether the loan is provided by the educational institution that the student attends. (3) Does not include open-end credit or any loan that is secured by real property or a dwelling. (4) Does not include an extension of credit in which the covered educational institution is the original creditor if either: (A) The term of the extension of credit is 90 days or less. (B) An interest rate will not be applied to the credit balance and the term of the extension of credit is one year or less, even if the credit is payable in more than four installments. (j) “Private education loan collection action” means any suit, arbitration, or other legal proceeding in which a claim is asserted to collect a private education loan. (k) “Private education loan collector” means a person, other than a private education lender, collecting or attempting to collect on a defaulted private education loan. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  167. 1788.202.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    Private education lenders and loan collectors may not send a written collection statement unless they already have the listed loan information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.202. (a) A private education lender or a private education loan collector shall not make any written statement to a debtor in an attempt to collect a private education loan unless the private education lender or private education loan collector possesses the following information: (1) The name of the owner of the private education loan. (2) The creditor’s name at the time of default, if applicable. (3) The creditor’s account number used to identify the private education loan at the time of default, if the original creditor used an account number to identify the private education loan at the time of default. (4) The amount due at default. (5) An itemization of interest, if any, that has accrued on the private education loan. (6) An itemization of fees, if any, claimed to be owed on the private education loan and whether those fees were imposed by the original creditor or any subsequent owners of the private education loan. (7) The date that the private education loan was incurred. (8) The date of the first partial payment or the first day that a payment was missed, whichever is earlier, that precipitated default. (9) The date and amount of the last payment, if applicable. (10) Any payments, settlement, or financial remuneration of any kind paid to the creditor by a guarantor, surety, or other party not obligated on the loan as compensation under a separate contract that provides coverage for financial losses incurred as a result of default, if applicable. (11) The names of all persons or entities that owned the private education loan after the time of default, if applicable, and the date of each sale or transfer. (12) A copy of the self-certification form and any other “needs analysis” conducted by the original creditor prior to origination of the loan. (13) Documentation establishing that the creditor is the owner of the specific individual private education loan at issue. If the private education loan was assigned more than once, the creditor shall possess each assignment or other writing evidencing the transfer of ownership of the specific individual private education loan to establish an unbroken chain of ownership, beginning with the original creditor to the first subsequent creditor and each additional creditor. Each assignment or other writing evidencing transfer of ownership or the right to collect shall contain the original creditor’s account number (redacted for security purposes to show only the last four digits) of the private education loan purchased or otherwise assigned, the date of purchase and assignment, and shall clearly show the borrower’s correct name associated with the original account number. The assignment or other writing attached shall be that by which the creditor or other assignee acquired the private education loan, not a document prepared for litigation. (14) A copy of all pages of the contract, application, or other documents evidencing the debtor’s liability for the private education loan, stating all terms and conditions applicable to the private education loan. (15) A list of all collection attempts made in the last 12 months, including date and time of all calls and written communications. (16) A statement as to whether the creditor is willing to renegotiate the terms of the private student loan. (17) Copies of all written settlement communications made in the last 12 months, or, in the alternative, a statement that the creditor has not attempted to settle or otherwise renegotiate the debt prior to suit. (18) A statement as to whether the private education loan is eligible for an income-based repayment plan. (b) (1) In addition to any other information required under applicable federal or state law, a private education lender or private education loan collector shall provide the information set forth in subdivision (a) in the first written collection communication with a debtor after the first of either of the following: (A) Default and acceleration. (B) A period of 12 consecutive months of default. (2) A private education lender or private education loan collector shall provide the information set forth in subdivision (a) to the debtor upon the debtor’s request if both of the following are true: (A) An event described in subparagraph (A) or (B) of paragraph (1) has occurred. (B) The debtor has not requested or received the information set forth in subdivision (a) within the previous 12 months. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  168. 1788.203.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    Private education lenders and loan collectors must document settlement agreements in writing, give the debtor a copy, and send a detailed final statement within 30 calendar days after accepting payment in full or a full compromise; electronic delivery is allowed if both sides agree.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.203. (a) All settlement agreements between a private education lender or private education loan collector and a debtor shall be documented in open court or otherwise reduced to writing. The private education lender or private education loan collector shall ensure that a copy of the written agreement is provided to the debtor. (b) A private education lender or private education loan collector that accepts a payment as payment in full, or as a full and final compromise of a private education loan, shall provide, within 30 calendar days, a final statement that shall clearly and conspicuously show the amount and date paid, the name of the entity paid, the current account number, the name of the private education lender or private education loan collector, the account number issued by the private education lender or private education loan collector, the name of the owner of the private education loan, and that a zero balance is owing. The statement may be provided electronically if the parties agree. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  169. 1788.204.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    Private education lenders and loan collectors may not sue or start arbitration or another legal proceeding to collect a private education loan if the claim’s statute of limitations has expired.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.204. A private education lender or private education loan collector shall not bring suit or initiate an arbitration or other legal proceeding to collect a private education loan if the applicable statute of limitations for the private education lender’s or private education loan collector’s claim has expired. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  170. 1788.205.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    In private education loan collection lawsuits, the complaint must include specified allegations and attach certain documents.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.205. In an action brought by a private education lender or private education loan collector to collect a private education loan: (a) The complaint shall allege all of the following: (1) The information required by paragraphs (1) to (11), inclusive, of subdivision (a) of Section 1788.202. (2) That the applicable statute of limitations has not expired. (3) That the plaintiff has complied with Section 1788.202. (b) Copies of the documents required by paragraphs (12) to (14), inclusive, of subdivision (a) of Section 1788.202 shall be attached to the complaint. (c) The requirements of this title shall not be deemed to require the disclosure in public records of personal, financial, or medical information, the confidentiality of which is protected by any state or federal law. (d) This section does not apply to a plaintiff that attaches to the complaint a declaration or affidavit pursuant to Section 2015.5 of the Code of Civil Procedure that is signed by a natural person and states all of the following: (1) That the plaintiff is an exempt entity. (2) The category in subdivision (a) of Section 1420 of the Financial Code under which the plaintiff falls. (3) The name and title of the signer. (4) That the signer has been authorized by the entity to make the affidavit or declaration. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  171. 1788.206.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    In private student loan collection actions, the plaintiff must submit and authenticate required documents before default or other judgment can be entered, and the court cannot enter a default judgment if the title’s requirements were not met.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.206. (a) In an action initiated by a private education lender or private education loan collector, no default or other judgment may be entered against a defendant unless documents are submitted by the plaintiff to the court to establish the facts required to be alleged by paragraphs (1) and (2) of subdivision (a) of Section 1788.205. The documents shall be properly authenticated and each shall be in a form that would be admissible as a business record under Section 1271 of the Evidence Code. (b) In an action initiated by a private education lender or private education loan collector, no default or other judgment may be entered against a defendant unless copies of the documents described in subdivision (b) of Section 1788.205 have been submitted by the plaintiff to the court. These documents shall be properly authenticated and each shall be in a form that would be admissible as a business record under Section 1271 of the Evidence Code. (c) In any action on a private education loan, if a plaintiff seeks a default judgment and has not complied with the requirements of this title, the court shall not enter a default judgment for the plaintiff and may, in its discretion, dismiss the action. (d) Except as provided in this title, this section is not intended to modify or otherwise amend the procedures established in Section 585 of the Code of Civil Procedure. (e) This section does not apply to a plaintiff that attaches to the complaint a declaration or affidavit pursuant to Section 2015.5 of the Code of Civil Procedure that is signed by a natural person and states all of the following: (1) That the plaintiff is an exempt entity. (2) The category in subdivision (a) of Section 1420 of the Financial Code under which the plaintiff falls. (3) The name and title of the signer. (4) That the signer has been authorized by the entity to make the affidavit or declaration. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  172. 1788.207.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    If a person did not get actual notice of a summons in time to defend a lender-collection action and a default or default judgment was entered, the person may file a motion to set it aside and seek leave to defend.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.207. Notwithstanding Section 473.5 of the Code of Civil Procedure, if service of a summons has not resulted in actual notice to a person in time to defend an action brought by a private education lender or a private education loan collector and a default or default judgment has been entered against the person in the action, the person may serve and file a notice of motion and motion to set aside the default or default judgment and for leave to defend the action utilizing the procedures set forth in Section 1788.61. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  173. 1788.208.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    A person may sue a creditor, private education lender, or private education loan collector for violating this title, and the court may award damages, costs, and attorney’s fees.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.208. (a) A person may bring a cause of action against a creditor, private education lender, or private education loan collector for a violation of any provision of this title in order to recover or obtain any of the following: (1) Damages in an amount equal to the sum of the following: (A) Any actual damages sustained by that person as a result of the violation. (B) Statutory damages in an amount as the court may allow, which shall not be less than five hundred dollars ($500) per violation. (2) Damages pursuant to Section 3294. (3) An order vacating any default judgment entered against that person. (4) Restitution of all moneys taken from or paid by that person after a default judgment was entered in favor of the private education lender or private education loan collector. (5) An order directing the private education lender or private education loan collector to do one or more of the following: (A) Request that a consumer reporting agency correct a consumer report that it issues. (B) Request that a consumer reporting agency remove derogatory information furnished to it after default. (C) Furnish correct information to a consumer reporting agency. (6) Any other relief that the court deems proper. (b) In the case of a class action, a defendant that violates any provision of this title shall be liable for any statutory damages for each named plaintiff as provided in subparagraph (B) of paragraph (1) of subdivision (a). If the court finds that the defendant engaged in a pattern and practice of violating any provision of this title, the court may award additional damages to the class in an amount not to exceed the lesser of five hundred thousand dollars ($500,000) or 1 percent of the net worth of the defendant. (c) (1) In the case of any successful cause of action under this section, the court shall award costs of the action, together with reasonable attorney’s fees as determined by the court. (2) Reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the cause of action was not in good faith. (d) A private education lender or private education loan collector shall have no civil liability for damages under this section if the private education lender or private education loan collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, and occurred notwithstanding the maintenance of procedures reasonably adopted to avoid any error. (e) A cause of action to enforce any liability created by this title shall be brought within one year from the date of the discovery by the plaintiff of the last violation, or, in the event a default judgment is entered against the debtor, one year from the date the borrower first receives a writ, notice, or order under Division 1 (commencing with Section 680.010) or Division 2 (commencing with Section 695.010) of Title 9 of Part 2 of the Code of Civil Procedure, whichever is later. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  174. 1788.209.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    Any waiver of this title is against public policy and has no legal effect.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.209. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  175. 1788.21.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 3. Debtor Responsibilities [1788.20 - 1788.22] ( Article 3 added by Stats. 1977, Ch. 907. )

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    A person with covered credit must notify the creditor or prospective creditor of changes to their name, address, or employment within a reasonable time, if the responsibility has been clearly and conspicuously disclosed in writing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 3. Debtor Responsibilities [1788.20 - 1788.22] ( Article 3 added by Stats. 1977, Ch. 907. ) ## 1788.21. (a) In connection with any covered credit existing or requested to be extended to a person, that person shall within a reasonable time notify the creditor or prospective creditor of any change in that person’s name, address, or employment. (b) Each responsibility set forth in subdivision (a) shall apply only if and after the creditor clearly and conspicuously in writing discloses that responsibility to that person. (Amended by Stats. 2024, Ch. 522, Sec. 14. (SB 1286) Effective January 1, 2025.)
  176. 1788.210.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    This section says the title remains effective even if part of it is invalid.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.210. The provisions of this title are severable. If any provision of this title or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)
  177. 1788.211.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. )

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    This title becomes operative on July 1, 2022.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.15. Private Student Loan Collections Reform Act [1788.200 - 1788.211] ( Title 1.6C.15 added by Stats. 2021, Ch. 559, Sec. 1. ) ## 1788.211. This title shall become operative on July 1, 2022. (Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, by its own provisions.)
  178. 1788.22.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 3. Debtor Responsibilities [1788.20 - 1788.22] ( Article 3 added by Stats. 1977, Ch. 907. )

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    A person with covered credit must not try to use the account once credit privileges have been terminated or suspended, and must notify the creditor and help investigate if unauthorized use may have occurred.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 3. Debtor Responsibilities [1788.20 - 1788.22] ( Article 3 added by Stats. 1977, Ch. 907. ) ## 1788.22. (a) In connection with any covered credit extended to a person under an account: (1) No such person shall attempt to consummate any covered credit transaction thereunder knowing that credit privileges under the account have been terminated or suspended. (2) Each such person shall notify the creditor by telephone, telegraph, letter, or any other reasonable means that an unauthorized use of the account has occurred or may occur as the result of loss or theft of a credit card, or other instrument identifying the account, within a reasonable time after that person’s discovery thereof, and shall reasonably assist the creditor in determining the facts and circumstances relating to any unauthorized use of the account. (b) Each responsibility set forth in subdivision (a) shall apply only if and after the creditor clearly and conspicuously in writing discloses that responsibility to that person. (Amended by Stats. 2024, Ch. 522, Sec. 15. (SB 1286) Effective January 1, 2025.)
  179. 1788.3.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. )

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    A qualifying credit union may provide information to an employer if the employer is ordinarily and necessarily entitled to receive it.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 1. General Provisions [1788 - 1788.3] ( Article 1 added by Stats. 1977, Ch. 907. ) ## 1788.3. Nothing contained in this title shall be construed to prohibit a credit union chartered under Division 5 (commencing with Section 14000) of the Financial Code or under the Federal Credit Union Act (Chapter 14 (commencing with Section 1751) of Title 12 of the United States Code) from providing information to an employer when the employer is ordinarily and necessarily entitled to receive such information because he is an employee, officer, committee member, or agent of such credit union. (Added by Stats. 1977, Ch. 907.)
  180. 1788.30.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. )

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    Debt collectors can be liable for damages, penalties, costs, and attorney’s fees for violating this title, but they may avoid civil liability if they cure certain violations quickly or show the violation was unintentional with reasonable procedures.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. ) ## 1788.30. (a) Any debt collector who violates this title with respect to any debtor shall be liable to that debtor only in an individual action, and his liability therein to that debtor shall be in an amount equal to the sum of any actual damages sustained by the debtor as a result of the violation. (b) Any debt collector who willfully and knowingly violates this title with respect to any debtor shall, in addition to actual damages sustained by the debtor as a result of the violation, also be liable to the debtor only in an individual action, and his additional liability therein to that debtor shall be for a penalty in such amount as the court may allow, which shall not be less than one hundred dollars ($100) nor greater than one thousand dollars ($1,000). (c) In the case of any action to enforce any liability under this title, the prevailing party shall be entitled to costs of the action. Reasonable attorney’s fees, which shall be based on time necessarily expended to enforce the liability, shall be awarded to a prevailing debtor; reasonable attorney’s fees may be awarded to a prevailing creditor upon a finding by the court that the debtor’s prosecution or defense of the action was not in good faith. (d) A debt collector shall have no civil liability under this title if, within 15 days either after discovering a violation which is able to be cured, or after the receipt of a written notice of such violation, the debt collector notifies the debtor of the violation, and makes whatever adjustments or corrections are necessary to cure the violation with respect to the debtor. (e) A debt collector shall have no civil liability to which such debt collector might otherwise be subject for a violation of this title, if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted notwithstanding the maintenance of procedures reasonably adapted to avoid any such violation. (f) Any action under this section may be brought in any appropriate court of competent jurisdiction in an individual capacity only, within one year from the date of the occurrence of the violation. (g) Any intentional violation of the provisions of this title by the debtor may be raised as a defense by the debt collector, if such violation is pertinent or relevant to any claim or action brought against the debt collector by or on behalf of the debtor. (Added by Stats. 1977, Ch. 907.)
  181. 1788.300.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 1. General Provisions [1788.300 - 1788.302] ( Chapter 1 added by Stats. 2021, Ch. 454, Sec. 1. )

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    This title may be cited as the Fair Debt Settlement Practices Act.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 1. General Provisions [1788.300 - 1788.302] ( Chapter 1 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.300. This title may be cited as the Fair Debt Settlement Practices Act. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  182. 1788.301.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 1. General Provisions [1788.300 - 1788.302] ( Chapter 1 added by Stats. 2021, Ch. 454, Sec. 1. )

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    This section defines key terms used in the Fair Debt Settlement Practices title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 1. General Provisions [1788.300 - 1788.302] ( Chapter 1 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.301. For purposes of this title: (a) “Debt settlement provider” means a person who, for compensation and on behalf of a consumer, provides debt settlement services. (b) “Debt settlement services” means any of the following: (1) Providing advice, or offering to act or acting as an intermediary, including, but not limited to, offering debt negotiation, debt reduction, or debt relief services between a consumer and one or more of the consumer’s creditors, if the primary purpose of that advice or action is to obtain a settlement for less than the full amount of the debt. (2) Advising, encouraging, or counseling a consumer to accumulate funds in an account for future payment of a reduced amount of debt to one or more of the consumer’s creditors. (c) “Settlement account” means a depository account established and used for the purpose of holding funds of a consumer to be distributed to a creditor in the event of a settlement of a consumer’s debt with the creditor. (d) “Consumer” means a person who is allegedly legally responsible for a debt. (e) “Person” means a natural person or entity, whether a corporation, partnership, association, trust, limited liability company, cooperative, or other organization. (f) “Creditor” means the person who originated the debt or is assigned, or has purchased for collection, a debt for which a consumer is allegedly legally responsible. (g) “Debt” means money, whether in principal, interest, fees, or other charges, which is due or owing or alleged to be due or owing from a natural person to another person and incurred primarily for personal, family, or household purposes. (h) “Payment processor” means a person who provides payment processing services. (i) “Payment processing services” means accepting, maintaining, holding, or distributing funds, or facilitating the acceptance, maintenance, holding, or distribution of funds, on behalf of a consumer for the purpose of facilitating debt settlement services. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  183. 1788.302.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 1. General Provisions [1788.300 - 1788.302] ( Chapter 1 added by Stats. 2021, Ch. 454, Sec. 1. )

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    Debt settlement providers must avoid false or misleading practices, give required disclosures and contract copies on schedule, and follow limits on fees, creditor contact, accounting statements, and contract cancellation.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 1. General Provisions [1788.300 - 1788.302] ( Chapter 1 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.302. (a) A debt settlement provider shall not engage in false, deceptive, or misleading acts or practices when providing debt settlement services. Without limiting the general application of the foregoing, an act or practice is false, deceptive, or misleading, in connection with providing debt settlement services, if the act or practice consists of any of the following: (1) Making or permitting another entity to publicly make on behalf of the debt settlement provider, a statement or representation that is false, deceptive, or misleading. (2) Posting directly, or indirectly causing to be posted, an online review or ranking on an internet website if the debt settlement provider, or its agent, provided anything of value in exchange for favorable treatment in that review or ranking. (3) Omitting any material information. (b) A debt settlement provider shall provide to the consumer the following disclosures along with an unsigned copy of the written contract proposed to be entered into between the debt settlement provider and the consumer no less than three calendar days prior to the execution of that contract by the consumer. A fully executed copy of the contract shall be delivered to the consumer by the debt settlement provider immediately after the debt settlement provider receives the contract. (1) The contract shall be preceded by a disclosure that contains all of the following information in conspicuous boldface type that is larger than the typeface provided in the contract typeface: (A) There is no guarantee that any particular debt or all of the consumer’s enrolled debts will be reduced, eliminated, or otherwise settled. (B) The deposits made pursuant to the contract will not be distributed to the creditor until a settlement is obtained. This may take months to achieve. (C) If the consumer stops paying any creditor, any of the following may occur: (i) The creditors may still try to collect. (ii) The creditors may sue. (iii) If a creditor obtains a judgment against the consumer, the creditor may garnish the consumer’s wages or levy the consumer’s bank account or accounts, or both garnish the consumer’s wages and levy the consumer’s bank account or accounts. (iv) The consumer’s credit score or credit rating may be negatively impacted. (D) Failing to pay debts on time may adversely affect the consumer’s credit rating or credit scores. (E) Specific results cannot be predicted or guaranteed, and the debt settlement provider cannot require a creditor to negotiate or settle a debt. (F) A consumer may cancel the debt settlement contract at any time without any penalty. (G) Debt settlement services may not be suitable for all individuals. (H) Bankruptcy may provide an alternative to debt settlement. (I) Canceled debt may be counted as income under federal tax law, and the consumer may have to pay income taxes on the amount of forgiven or reduced debt. (J) Many sources of income may be protected from debt collection. Common sources of protected income include disability insurance benefits, life insurance benefits, military benefits, pension plans, retirement benefits, public assistance, social security benefits, supplemental security income (SSI), unemployment benefits, veterans benefits, workers compensation, and student aid. See form EJ-155 from the Judicial Council for a complete list. (K) The number of months estimated to enter into settlement agreements that completely resolve all enrolled debts. (L) All conditions that the consumer must satisfy before the debt settlement provider will make a settlement offer to a creditor. (M) Whether the debt settlement provider pays or receives referral fees. (2) Each contract between a consumer and debt settlement provider: (A) Shall list each debt to be serviced, including, for each debt, the name of the creditor and the total amount of the debt. The total amount of the debt may be based on either a billing statement for the debt or information in the consumer’s consumer report, as that term is defined under the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.). The billing statement or consumer report must have been issued within 30 calendar days of the date of the contract. (B) Shall provide the estimated period of time it will take the consumer to accumulate in a settlement account the amount of money estimated to be required to settle all debts. (C) Shall provide the amount of time necessary to achieve the represented results. (D) Shall provide, in terms easily understood by the least sophisticated consumer, the method that the debt settlement provider will use to calculate the charges and fees for debt settlement services. (E) Shall provide the name and mailing address of the debt settlement provider and of the consumer. (F) Shall provide a telephone number at which the consumer may speak, during normal business hours, with a live representative of the debt settlement provider during normal business hours who is able to access information about the consumer’s account. (G) Shall be provided to the consumer in English and in the language in which it was negotiated or in which the debt settlement services were offered, if that language is one of the languages set forth in Section 1632. (H) Shall not require a compulsory agreement with any other party. A debt settlement provider may require that the consumer obtain a dedicated settlement account and provide a list of preferred vendors, however a payment processor who receives compensation from the consumer for payment processing services must supply its own contract to the consumer for engagement. (I) Shall not be entered into by a consumer who is not already allegedly legally responsible for all the debt that will be enrolled in the debt settlement services. In the event multiple consumers engage in a single contract for debt settlement services, if any consumer is not proficient in English and speaks a language set forth in Section 1632, a translated copy of the disclosures and contract shall be provided to the consumer in that language and in a manner that complies with this subdivision. (3) A debt settlement provider shall not communicate with any of a consumer’s creditors until five calendar days after full execution of a contract for debt settlement services. (c) A debt settlement provider and a payment processor shall not engage in unfair, abusive, or deceptive acts or practices when providing debt settlement services or payment processing services. Without limiting the general application of the foregoing, in connection with providing debt settlement services and payment processing services, an act or practice is unfair, abusive, or deceptive if the act or practice consists of any of the following: (1) For a debt settlement provider and payment processor, offering to lend money or extend credit to the consumer, or purchase an enrolled debt. (2) For a debt settlement provider requesting or receiving payment of any fee or consideration for debt settlement services, unless and until all of the following occur: (A) The debt settlement provider has renegotiated, settled, reduced, or otherwise altered the terms of at least one debt pursuant to a settlement agreement approved and executed by the consumer. (B) The consumer has made at least one payment pursuant to that settlement agreement between the consumer and the creditor. (C) To the extent that debts enrolled in a debt settlement service are negotiated, settled, or modified individually, the fee or consideration must either: (i) Bear the same proportional relationship to the total fee for renegotiating, settling, reducing, or altering the terms of the entire debt balance as the individual debt amount bears to the entire debt amount. The individual debt amount and the entire debt amount are those owed at the time the debt was enrolled in the service. (ii) Represent a percentage of the amount saved as a result of the renegotiation, settlement, reduction, or alteration. The percentage charged cannot change from one individual debt to another. The amount saved is the difference between the amount owed at the time the debt was enrolled in the service and the amount agreed pursuant to the settlement agreement between the consumer and the creditor to satisfy the debt. (3) Beginning July 1, 2022, for a payment processor, facilitating the distribution of payment of any fee or consideration for debt settlement services before the requirements set forth in paragraph (2) have been met. (4) For a payment processor, failing to distribute a statement of accounting to a consumer at least once a month while the consumer is engaged with the payment processor, as well as on or before the fifth business day after a consumer requests a statement of accounting. (A) When an accounting is available to the consumer online, the payment processor must make prominent and ongoing the ability for a consumer to opt in to a paper accounting to be mailed to the consumer under the terms of this section. (B) The statement of accounting must contain the following information to the extent applicable: (i) A list of deposits made into, and withdrawals from, the consumer’s settlement account during the previous month. (ii) The fees that the debt settlement provider has billed and collected in connection with each of the debts settled during the previous month. (iii) The fees that the payment processor has billed and collected in connection with payment processing services during the previous month. (iv) The amount of money that the consumer holds in the consumer’s settlement account. (C) Within five business days of a consumer’s request, a payment processor shall provide a consolidated statement of accounting containing all of the following: (i) A list of deposits made into, and withdrawals from, the consumer’s settlement account starting from the outset of the contract. (ii) A list of fees that the debt settlement provider has billed and collected in connection with each of the debts settled starting from the outset of the contract. (iii) A list of fees that the payment processor has billed and collected in connection with payment processing services starting from the outset of the contract. (iv) The amount of money that the consumer holds in the consumer’s settlement account. (5) For a debt settlement provider, failing to distribute a statement of accounting to a consumer at least once a month while the contract for debt settlement services is in effect, as well as on or before the fifth business day after a consumer requests a statement of accounting. (A) When an accounting is available to the consumer online, the debt settlement provider must make prominent and ongoing the ability for a consumer to opt in to a paper accounting to be mailed to the consumer under the terms of this section. (B) The statement of accounting must contain the following information to the extent applicable: (i) The amounts, dates, and creditors associated with each settlement obtained by the debt settlement provider on behalf of the consumer. (ii) The fees that the debt settlement provider has billed and collected in connection with each of the debts settled. (iii) With respect to any debt settled by the debt settlement provider on behalf of the consumer, all of the following information: (I) The total amount of money that the consumer paid or will pay to the creditor to settle the debt. (II) The amount of the debt at the time the debt settlement provider and the consumer entered into the contract. (III) The amount of the debt at the time the creditor agreed to settle the debt. (IV) The amount of compensation that the debt settlement provider received, or may receive, to settle the debt. (d) (1) A consumer may terminate a contract for debt settlement services at any time without a fee or penalty of any sort by notifying the debt settlement provider in writing, electronically, or orally. (2) The notice described in paragraph (1) shall be deemed effective immediately upon being sent if made electronically, including via text message or orally. When the notice is sent via certified mail, notice shall be deemed effective upon receipt. When written notice is sent via noncertified mail, notice shall be deemed effective seven calendar days from the date of mailing. (3) Upon effective notice of request for cancellation of the contract, the debt settlement provider shall do all of the following: (A) Immediately cancel the contract. (B) Immediately notify the payment processor that the consumer has canceled the debt settlement services and transmit to the payment processor the consumer’s instruction to close the settlement account and deliver the balance in the settlement account to the consumer. (C) Provide, within three business days, a detailed accounting of any amounts received or expected to be received by the debt settlement provider from the consumer’s settlement account after the debt settlement provider received effective notice of request for cancellation. The detailed accounting shall include an explanation of how the amounts were calculated in accordance with the requirements of paragraph (2) of subdivision (c). (D) Provide within three business days copies of all documents, notices, or other communications it has received from any creditor on behalf of the consumer. (4) The items in subparagraphs (C) and (D) of paragraph (3) shall be sent by United States mail or by electronic means reasonably calculated to reach the consumer. (5) Upon receipt of notice of cancellation of the contract from the consumer or debt settlement provider, the payment processor shall stop accumulating service fees, close the settlement account, and deliver to the consumer the balance in the settlement account within seven days. The payment processor shall provide, within 10 business days, a detailed accounting of the amount refunded and any amounts sent to the debt settlement provider after or upon the payment processor receiving notice of the cancellation of the contract. (e) A debt settlement provider shall immediately forward the following notices to the consumer, either by United States mail or by electronic means reasonably calculated to reach the consumer: (1) Any notice of a lawsuit on an enrolled debt from any person other than the consumer. (2) Any settlement agreement that a debt settlement provider has negotiated on the consumer’s behalf. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  184. 1788.303.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 2. Application of the Fair Debt Settlement Practices Act [1788.303 - 1788.304] ( Chapter 2 added by Stats. 2021, Ch. 454, Sec. 1. )

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    This title applies to people providing payment processing services, debt settlement services, or claiming to do debt settlement work.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 2. Application of the Fair Debt Settlement Practices Act [1788.303 - 1788.304] ( Chapter 2 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.303. This title applies to persons providing payment processing services, debt settlement services, and persons purporting to engage in debt settlement services. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  185. 1788.304.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 2. Application of the Fair Debt Settlement Practices Act [1788.303 - 1788.304] ( Chapter 2 added by Stats. 2021, Ch. 454, Sec. 1. )

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    This title does not apply to certain licensed financial businesses, qualifying nonprofit tax-exempt organizations, certain attorneys and law firms, and certain merchant-owned or member-controlled credit associations.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 2. Application of the Fair Debt Settlement Practices Act [1788.303 - 1788.304] ( Chapter 2 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.304. This title does not apply to any of the following: (a) Any person, or the person’s authorized agent, doing business under license and authority of the Commissioner of Financial Protection and Innovation under Divisions 1.1 (commencing with Section 1000), 2 (commencing with Section 5000), and 5 (commencing with Section 14000) of the Financial Code or under any law of this state or of the United States relating to banks or credit unions. (b) Any nonprofit business organization that is certified as tax-exempt by the Internal Revenue Service and that does not receive compensation from the consumer for providing debt settlement services. (c) Attorneys and law firms that meet all of the following criteria: (1) The attorney or law firm does not charge for services regulated by this title. (2) The fees and disbursements are not charges or costs shared, directly or indirectly, with a debt settlement provider. (3) Any of the following is true: (A) The attorney or law firm is retained by a consumer for the purpose of legal representation in consumer debt litigation. (B) The attorney or law firm provides debt settlement services pursuant to representation by retainer for a debt collection matter that does not involve consumer debt. (C) The attorney or law firm is retained by the consumer primarily for purposes other than the settlement of consumer debt. (d) A merchant-owned credit or creditors association, or a member-owned, member-controlled, or member-directed association whose principal function is that of servicing the community as a reporting agency. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  186. 1788.305.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 3. Enforcement of the Fair Debt Settlement Practices Act [1788.305 - 1788.307] ( Chapter 3 added by Stats. 2021, Ch. 454, Sec. 1. )

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    Debt settlement providers and payment processors must comply with this title, and consumers may sue for violations.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 3. Enforcement of the Fair Debt Settlement Practices Act [1788.305 - 1788.307] ( Chapter 3 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.305. (a) A debt settlement provider and a payment processor shall comply with this title. (b) A consumer may bring a cause of action against a debt settlement provider and a payment processor for violation of any provision of this title in order to recover or obtain any of the following: (1) Damages in an amount equal to the sum of the following: (A) Statutory damages in an amount to be determined by the court of no less than one thousand dollars ($1,000) and no more than five thousand dollars ($5,000) per violation of this title. (B) Any actual damages sustained by the consumer as a result of the violation. (2) Injunctive relief. (3) Any other relief that the court deems proper. (c) (1) In the case of any successful cause of action under this section, the court shall award costs of the action, together with reasonable attorney’s fees as determined by the court. (2) Reasonable attorney’s fees may be awarded to a prevailing debt settlement provider and a prevailing payment processor upon a finding by the court that the consumer’s prosecution of the cause of action was not in good faith. (d) A debt settlement provider or a prevailing payment processor shall have no civil liability for damages under this section if the debt settlement provider or a prevailing payment processor shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, and occurred notwithstanding the maintenance of procedures reasonably adopted to avoid any error. (e) A cause of action brought under this section shall be brought within four years of the latter of the following dates: (1) The last payment by or on behalf of the consumer. (2) The date on which the consumer discovered or reasonably should have discovered the facts giving rise to the consumer’s claim. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  187. 1788.306.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 3. Enforcement of the Fair Debt Settlement Practices Act [1788.305 - 1788.307] ( Chapter 3 added by Stats. 2021, Ch. 454, Sec. 1. )

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    A waiver of this title’s provisions is against public policy and is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 3. Enforcement of the Fair Debt Settlement Practices Act [1788.305 - 1788.307] ( Chapter 3 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.306. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  188. 1788.307.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 3. Enforcement of the Fair Debt Settlement Practices Act [1788.305 - 1788.307] ( Chapter 3 added by Stats. 2021, Ch. 454, Sec. 1. )

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    The title is severable: if one provision or its application is invalid, the rest can still be enforced if they work without it.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.17. Fair Debt Settlement Practices [1788.300 - 1788.307] ( Title 1.6C.17 added by Stats. 2021, Ch. 454, Sec. 1. ) ## CHAPTER 3. Enforcement of the Fair Debt Settlement Practices Act [1788.305 - 1788.307] ( Chapter 3 added by Stats. 2021, Ch. 454, Sec. 1. ) ## 1788.307. The provisions of this title are severable. If any provision of this title or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Added by Stats. 2021, Ch. 454, Sec. 1. (AB 1405) Effective January 1, 2022.)
  189. 1788.31.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. )

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    If part of this title is held invalid, the rest still remains in effect.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. ) ## 1788.31. If any provision of this title, or the application thereof to any person or circumstances, is held invalid, the remaining provisions of this title, or the application of such provisions to other persons or circumstances, shall not be affected thereby. (Added by Stats. 1977, Ch. 907.)
  190. 1788.32.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. )

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    This section says the remedies under this title are cumulative and do not replace other legal procedures, rights, or remedies.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. ) ## 1788.32. The remedies provided herein are intended to be cumulative and are in addition to any other procedures, rights, or remedies under any other provision of law. The enactment of this title shall not supersede existing administrative regulations of the Director of Consumer Affairs except to the extent that those regulations are inconsistent with the provisions of this title. (Added by Stats. 1977, Ch. 907.)
  191. 1788.33.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. )

    Verify source ↗

    A waiver of this title’s provisions is not allowed and has no legal effect.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C. FAIR DEBT COLLECTION PRACTICES [1788 - 1788.33] ( Title 1.6C added by Stats. 1977, Ch. 907. ) ## ARTICLE 4. Enforcement [1788.30 - 1788.33] ( Article 4 added by Stats. 1977, Ch. 907. ) ## 1788.33. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 12. Effective January 1, 2003.)
  192. 1788.50.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

    Verify source ↗

    This section defines “debt buyer” and “charged-off consumer debt,” and says the title applies to debt buyers for consumer debt sold or resold on or after January 1, 2014.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.50. (a) As used in this title: (1) “Debt buyer” means a person or entity that is regularly engaged in the business of purchasing charged-off consumer debt for collection purposes, whether it collects the debt itself, hires a third party for collection, or hires an attorney-at-law for collection litigation. “Debt buyer” does not mean a person or entity that acquires a charged-off consumer debt incidental to the purchase of a portfolio predominantly consisting of consumer debt that has not been charged off. (2) “Charged-off consumer debt” means a consumer debt that has been removed from a creditor’s books as an asset and treated as a loss or expense. (b) The acquisition by a check services company of the right to collect on a paper or electronic check instrument, including an Automated Clearing House item, that has been returned unpaid to a merchant does not constitute a purchase of delinquent consumer debt under this title. (c) Terms defined in Title 1.6C (commencing with Section 1788) shall apply to this title. (d) This title shall apply to debt buyers with respect to all consumer debt sold or resold on or after January 1, 2014. (Added by Stats. 2013, Ch. 64, Sec. 2. (SB 233) Effective January 1, 2014.)
  193. 1788.52.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

    Verify source ↗

    Debt buyers must give consumers specific debt information and documents before collecting by written communication, and they must stop collection if they cannot provide the requested materials on time.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.52. (a) A debt buyer shall not make any written statement to a debtor in an attempt to collect a consumer debt unless the debt buyer possesses the following information: (1) That the debt buyer is the sole owner of the debt at issue or has authority to assert the rights of all owners of the debt. (2) The debt balance at charge off and an explanation of the amount, nature, and reason for all post-charge-off interest and fees, if any, imposed by the charge-off creditor or any subsequent purchasers of the debt. This paragraph shall not be deemed to require a specific itemization, but the explanation shall identify separately the charge-off balance, the total of any post-charge-off interest, and the total of any post-charge-off fees. (3) The date of default or the date of the last payment. (4) The name and an address of the charge-off creditor at the time of charge off, and the charge-off creditor’s account number associated with the debt. The charge-off creditor’s name and address shall be in sufficient form so as to reasonably identify the charge-off creditor. (5) The name and last known address of the debtor as they appeared in the charge-off creditor’s records prior to the sale of the debt. If the debt was sold prior to January 1, 2014, the name and last known address of the debtor as they appeared in the debt owner’s records on December 31, 2013, shall be sufficient. (6) The names and addresses of all persons or entities that purchased the debt after charge off, including the debt buyer making the written statement. The names and addresses shall be in sufficient form so as to reasonably identify each such purchaser. (7) The California license number of the debt buyer. (b) A debt buyer shall not make any written statement to a debtor in an attempt to collect a consumer debt unless the debt buyer has access to a copy of a contract or other document evidencing the debtor’s agreement to the debt. If the claim is based on debt for which no signed contract or agreement exists, the debt buyer shall have access to a copy of a document provided to the debtor while the account was active, demonstrating that the debt was incurred by the debtor. For a revolving credit account, the most recent monthly statement recording a purchase transaction, last payment, or balance transfer shall be deemed sufficient to satisfy this requirement. (c) A debt buyer shall provide the information or documents identified in subdivisions (a) and (b) to the debtor without charge within 15 calendar days of receipt of a debtor’s written request for information regarding the debt or proof of the debt. If the debt buyer cannot provide the information or documents within 15 calendar days, the debt buyer shall cease all collection of the debt until the debt buyer provides the debtor the information or documents described in subdivisions (a) and (b). Except as provided otherwise in this title, the request by the debtor shall be consistent with the validation requirements contained in Section 1692g of Title 15 of the United States Code. A debt buyer shall provide all debtors with whom it has contact an active postal address to which these requests can be sent. A debt buyer may also provide an active email address to which these requests can be sent and through which information and documents can be delivered, if the parties agree. (d) (1) A debt buyer shall include with its first written communication with the debtor in no smaller than 12-point type, a separate prominent notice that provides: “You may request records showing the following: (1) that [insert name of debt buyer] has the right to seek collection of the debt; (2) the debt balance, including an explanation of any interest charges and additional fees; (3) the date of default or the date of the last payment; (4) the name of the charge-off creditor and the account number associated with the debt; (5) the name and last known address of the debtor as it appeared in the charge-off creditor’s or debt buyer’s records prior to the sale of the debt, as appropriate; and (6) the names of all persons or entities that have purchased the debt. You may also request from us a copy of the contract or other document evidencing your agreement to the debt. “A request for these records may be addressed to: [insert debt buyer’s active mailing address and email address, if applicable].” (2) When collecting on a time-barred debt where the debt is not past the date for obsolescence provided for in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c): “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it. If you do not pay the debt, [insert name of debt buyer] may [continue to] report it to the credit reporting agencies as unpaid for as long as the law permits this reporting.” (3) When collecting on a time-barred debt where the debt is past the date for obsolescence provided for in Section 605(a) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681c): “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, and we will not report it to any credit reporting agency.” (e) If a language other than English is principally used by the debt buyer in the initial oral contact with the debtor, the notice required by subdivision (d) shall be provided to the debtor in that language within five working days. (f) A debt buyer shall not collect, or make any attempt to collect consumer debt that originated with a hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code without including in the first written communication to the debtor a copy of the notice required pursuant to subdivision (e) of Section 127425 of the Health and Safety Code. (g) In the event of a conflict between the requirements of subdivision (d) and federal law, so that it is impracticable to comply with both, the requirements of federal law shall prevail. (Amended by Stats. 2021, Ch. 473, Sec. 3. (AB 1020) Effective January 1, 2022.)
  194. 1788.54.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

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    Debt buyers must document settlement agreements, give debtors a copy, send receipts or monthly statements within 30 days after receiving payment, provide a final statement when a debt is paid in full or settled, and not sell interests in resolved debts or related personal or financial information.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.54. (a) All settlement agreements between a debt buyer and a debtor shall be documented in open court or otherwise reduced to writing. The debt buyer shall ensure that a copy of the written agreement is provided to the debtor. (b) A debt buyer that receives payment on a debt shall provide, within 30 calendar days, a receipt or monthly statement, to the debtor. The receipt or statement shall clearly and conspicuously show the amount and date paid, the name of the entity paid, the current account number, the name of the charge-off creditor, the account number issued by the charge-off creditor, and the remaining balance owing, if any. The receipt or statement may be provided electronically if the parties agree. (c) A debt buyer that accepts a payment as payment in full, or as a full and final compromise of the debt, shall provide, within 30 calendar days, a final statement that complies with subdivision (b). A debt buyer shall not sell an interest in a resolved debt, or any personal or financial information related to the resolved debt. (Added by Stats. 2013, Ch. 64, Sec. 2. (SB 233) Effective January 1, 2014.)
  195. 1788.56.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

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    A debt buyer may not sue, arbitrate, or otherwise start a legal proceeding to collect a consumer debt if the claim’s statute of limitations has expired.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.56. A debt buyer shall not bring suit or initiate an arbitration or other legal proceeding to collect a consumer debt if the applicable statute of limitations on the debt buyer’s claim has expired. (Added by Stats. 2013, Ch. 64, Sec. 2. (SB 233) Effective January 1, 2014.)
  196. 1788.58.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

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    A debt buyer suing on a consumer debt must include specific allegations in the complaint and attach required documents; extra information is required for certain hospital-originated debts.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.58. In an action brought by a debt buyer on a consumer debt: (a) The complaint shall allege all of the following: (1) That the plaintiff is a debt buyer. (2) The nature of the underlying debt and the consumer transaction or transactions from which it is derived, in a short and plain statement. (3) That the debt buyer is the sole owner of the debt at issue, or has authority to assert the rights of all owners of the debt. (4) The debt balance at charge off and an explanation of the amount, nature, and reason for all post-charge-off interest and fees, if any, imposed by the charge-off creditor or any subsequent purchasers of the debt. This paragraph shall not be deemed to require a specific itemization, but the explanation shall identify separately the charge-off balance, the total of any post-charge-off interest, and the total of any post-charge-off fees. (5) The date of default or the date of the last payment. (6) The name and an address of the charge-off creditor at the time of charge off and the charge-off creditor’s account number associated with the debt. The charge-off creditor’s name and address shall be in sufficient form so as to reasonably identify the charge-off creditor. (7) The name and last known address of the debtor as they appeared in the charge-off creditor’s records prior to the sale of the debt. If the debt was sold prior to January 1, 2014, the debtor’s name and last known address as they appeared in the debt owner’s records on December 31, 2013, shall be sufficient. (8) The names and addresses of all persons or entities that purchased the debt after charge off, including the plaintiff debt buyer. The names and addresses shall be in sufficient form so as to reasonably identify each such purchaser. (9) That the debt buyer has complied with Section 1788.52. (b) A copy of the contract or other document described in subdivision (b) of Section 1788.52 shall be attached to the complaint. (c) The complaint in an action brought by a debt buyer for debt that originated with a general acute care hospital licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code shall also contain both of the following: (1) The information contained in paragraph (6) of subdivision (e) of Section 127425 of the Health and Safety Code and a statement identifying the language in which that information was sent to the debtor. (2) Copies of the application for financial assistance that was provided to the debtor by the hospital and the notice that was provided to the debtor by the hospital about applying for financial assistance, attached to the complaint. If the notice was provided as part of the hospital bill that cannot be separated, the bill shall be redacted to remove confidential information, or a sample hospital bill with the substance of the notice regarding financial assistance in the format in use at the time the patient was billed may be provided. (d) The requirements of this title shall not be deemed to require the disclosure in public records of personal, financial, or medical information, the confidentiality of which is protected by any state or federal law. (Amended by Stats. 2021, Ch. 473, Sec. 4. (AB 1020) Effective January 1, 2022.)
  197. 1788.60.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

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    In debt-buyer actions, a court may not enter a default or other judgment against a debtor unless required authenticated records are submitted.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.60. (a) In an action initiated by a debt buyer, no default or other judgment may be entered against a debtor unless business records, authenticated through a sworn declaration, are submitted by the debt buyer to the court to establish the facts required to be alleged by paragraphs (3) to (8), inclusive, of subdivision (a) of Section 1788.58. (b) No default or other judgment may be entered against a debtor unless a copy of the contract or other document described in subdivision (b) of Section 1788.52, authenticated through a sworn declaration, has been submitted by the debt buyer to the court. (c) In any action on a consumer debt, if a debt buyer plaintiff seeks a default judgment and has not complied with the requirements of this title, the court shall not enter a default judgment for the plaintiff and may, in its discretion, dismiss the action. (d) Except as provided in this title, this section is not intended to modify or otherwise amend the procedures established in Section 585 of the Code of Civil Procedure. (Added by Stats. 2013, Ch. 64, Sec. 2. (SB 233) Effective January 1, 2014.)
  198. 1788.61.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

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    A person who did not get actual notice of a debt-buyer case in time to defend may ask the court to set aside a default or default judgment and defend the case.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.61. (a) (1) Notwithstanding Section 473.5 of the Code of Civil Procedure, if service of a summons has not resulted in actual notice to a person in time to defend an action brought by a debt buyer and a default or default judgment has been entered against the person in the action, the person may serve and file a notice of motion and motion to set aside the default or default judgment and for leave to defend the action. (2) Except as provided in paragraph (3), the notice of motion shall be served and filed within a reasonable time, but in no event exceeding the earlier of: (A) Six years after entry of the default or default judgment against the person. (B) One hundred eighty days of the first actual notice of the action. (3) (A) Notwithstanding paragraph (2), in the case of identity theft or mistaken identity, the notice of motion shall be served and filed within a reasonable time, but in no event exceeding 180 days of the first actual notice of the action. (B) (i) In the case of identity theft, the person alleging that they are a victim of identity theft shall provide the court with either a copy of a Federal Trade Commission identity theft report or a copy of a police report filed by the person alleging that they are the victim of an identity theft crime, including, but not limited to, a violation of Section 530.5 of the Penal Code, for the specific debt associated with the judgment. (ii) In the case of mistaken identity, the moving party shall provide relevant information or documentation to support the claim that they are not the party named in the judgment or is not the person who incurred or owes the debt. (b) A notice of motion to set aside a default or default judgment and for leave to defend the action shall designate as the time for making the motion a date prescribed by Section 1005 of the Code of Civil Procedure, and it shall be accompanied by an affidavit stating under oath that the person’s lack of actual notice in time to defend the action was not caused by their avoidance of service or inexcusable neglect. The person shall serve and file with the notice a copy of the answer, motion, or other pleading proposed to be filed in the action. Either party may introduce, and the court may consider, evidence in support of its motion or opposition, including evidence relating to the process server who appears on the proof of service of the summons and complaint. (c) Upon a finding by the court that the motion was made within the period permitted by subdivision (a) and that the person’s lack of actual notice in time to defend the action was not caused by their avoidance of service or inexcusable neglect, the court may set aside the default or default judgment on whatever terms as may be just and allow the party to defend the action. If the validity of the judgment is not challenged, the court may select an appropriate remedy other than setting aside the default or default judgment. (d) This section shall apply to a default or default judgment entered on or after January 1, 2010, except in the case of identity theft or mistaken identity, in which case this section shall apply regardless of the date of the default or default judgment. (e) This section shall not limit the equitable authority of the court or other available remedies under law. (Amended by Stats. 2021, Ch. 265, Sec. 2. (AB 430) Effective January 1, 2022.)
  199. 1788.62.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

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    A debt buyer that violates this title can be liable for actual damages, statutory damages, costs, and attorney’s fees; class actions can also allow additional damages, and a one-year filing limit applies.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.62. (a) In the case of an action brought by an individual or individuals, a debt buyer that violates any provision of this title with respect to any person shall be liable to that person in an amount equal to the sum of the following: (1) Any actual damages sustained by that person as a result of the violation, including, but not limited to, the amount of any judgment obtained by the debt buyer as a result of a time-barred suit to collect a debt from that person. (2) Statutory damages in an amount as the court may allow, which shall not be less than one hundred dollars ($100) nor greater than one thousand dollars ($1,000). (b) In the case of a class action, a debt buyer that violates any provision of this title shall be liable for any statutory damages for each named plaintiff as provided in paragraph (2) of subdivision (a). If the court finds that the debt buyer engaged in a pattern and practice of violating any provision of this title, the court may award additional damages to the class in an amount not to exceed the lesser of five hundred thousand dollars ($500,000) or 1 percent of the net worth of the debt buyer. (c) (1) In the case of any successful action to enforce liability under this section, the court shall award costs of the action, together with reasonable attorney’s fees as determined by the court. (2) Reasonable attorney’s fees may be awarded to a prevailing debt buyer upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith. (d) In determining the amount of liability under subdivision (b), the court shall consider, among other relevant factors, the frequency and persistence of noncompliance by the debt buyer, the nature of the noncompliance, the resources of the debt buyer, and the number of persons adversely affected. (e) A debt buyer shall have no civil liability under this section if the debt buyer shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, and occurred notwithstanding the maintenance of procedures reasonably adopted to avoid any error. (f) An action to enforce any liability created by this title shall be brought within one year from the date of the last violation. (g) Recovery in an action brought under the Rosenthal Fair Debt Collection Practices Act (Title 1.6C (commencing with Section 1788)) or the federal Fair Debt Collection Practices Act (15 U.S.C. Sec. 1692 et seq.) shall preclude recovery for the same acts in an action brought under this title. (Added by Stats. 2013, Ch. 64, Sec. 2. (SB 233) Effective January 1, 2014.)
  200. 1788.64.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. )

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    A waiver of the title’s provisions is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 1.6C.5. Fair Debt Buying Practices [1788.50 - 1788.66] ( Title 1.6C.5 added by Stats. 2013, Ch. 64, Sec. 2. ) ## 1788.64. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2013, Ch. 64, Sec. 2. (SB 233) Effective January 1, 2014.)

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