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Support California Senate Bill 784, Truth in Home Improvement Loans Act!
SB 784 (Durazo) — Truth in Home Improvement Loans Act
Last updated: June 1, 2025
Summary
SB 784 establishes new consumer protections to increase transparency and accountability in the home improvement lending industry.
Background
Home improvement financing has become a niche market rife with deceptive practices. Lenders often bundle projects with unsecured loans and use misleading sales tactics, especially during in-home sales. These practices disproportionately affect non-English speakers, seniors, communities of color, and individuals with limited technology access.
Many consumers end up in loan agreements with terms they didn’t understand or agree to—sometimes not realizing they took out a loan at all. Lenders often pay contractors upfront, removing incentives to complete projects, and leaving homeowners with unfinished work while still being liable for repayment.
Problem
The Contractors State License Board reports a 154% increase in complaints against solar companies, often related to the kinds of financing this bill addresses. Current laws offer limited protection. Lenders deny responsibility for deceptive practices, while contractors disappear, leaving consumers in debt and with incomplete or non-functioning improvements.
Solution
SB 784 would:
- Require a lender-consumer confirmation call—without a salesperson present—before finalizing any financing.
- Prohibit loan repayment until the lender verifies that the home improvements are operational.
- Guarantee consumer access to all loan-related documents and information.
- Extend the cancellation period for home solicitation contracts.
- Mandate disclosure of hidden “dealer fees” that inflate loan costs.
- Hold lenders accountable for misrepresentations unless corrected during the confirmation call.
How to Support SB 784
1. Call Your Legislators
Use this lookup tool to find your California State Senator and Assemblymember. Call their office and urge them to support SB 784. A short, polite message is powerful.
2. Email Your Legislators
Send a message of support through your legislators’ websites or via email. Personalize your note if you can—constituent voices matter.
3. Tell Your Neighbors and Friends / Share on Social Media
Spread the word and encourage others in your community to take action in support of this important bill.