California proposes SB 784 to combat predatory home improvement lending practices

The California Assembly Banking and Finance Committee convened on July 7, 2025, to discuss critical legislation aimed at protecting homeowners from predatory lending practices. The meeting highlighted the urgent need for consumer protection in the face of deceptive financial schemes that disproportionately affect low-income and senior homeowners.

Natasha Blazer, a staff attorney with Housing and Economic Rights Advocates (HERA), presented a compelling case for Senate Bill 784. She shared the story of Mr. Lopez, a 74-year-old widower from Orange County, who fell victim to fraudulent practices while seeking home improvements under the guise of a government program. Despite assurances of affordability and subsidies, Mr. Lopez was misled into signing documents electronically, resulting in multiple bills from lenders he had never engaged with. Blazer emphasized that such cases are not isolated, as many vulnerable consumers face similar exploitation.

The bill aims to address these predatory practices by ensuring that consumers are fully informed about the costs associated with home improvement loans and only pay for services that are actually delivered. Blazer noted that the affected demographics often include low-income seniors, homeowners of color, and individuals with limited English proficiency, exacerbating their financial insecurity.

Andrew Kushner from the Center for Responsible Lending also spoke in support of the bill, focusing on the issue of hidden dealer fees that inflate loan costs without borrowers' knowledge. He praised the bill's disclosure provisions, which are designed to provide consumers with clear information about the true costs of their loans, enabling them to make informed decisions.

The committee heard additional support from various organizations and individuals, including representatives from the National Housing Law Project, the Consumer Federation of California, and the California Low Income Consumer Coalition, all advocating for the bill's passage.

The discussions underscored the committee's commitment to safeguarding consumers against deceptive financial practices and highlighted the importance of transparency in lending. As the bill moves forward, it aims to empower homeowners and restore fairness in the lending process across California.