Consumers: financial protection.

New Section 1 amends Financial Code Section 90002 to define which licensed entities are exempt from the CCFPL, including escrow agents, finance lenders, broker-dealers, mortgage lenders, check sellers, capital access companies, and financial institutions. Banks and credit unions acting under federal or other-state licenses are also exempt.

The bill's overall scope expanded from a single topic (small loan interest rates and credit education requirements) to also include the regulatory framework governing which entities fall under the CCFPL and what enforcement powers the Commissioner retains over exempt entities.

New subsection (b)(2) of Section 90002 explicitly states that the exemptions do not prevent the Commissioner from using CCFPL authority to enforce Section 90003, which prohibits deceptive or abusive acts or practices. This means exempt licensed entities can still be pursued for unfair or deceptive conduct under the consumer protection law.

Senator Grayson was added as a co-sponsor, and the fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review before proceeding.

Removed the requirement that finance lenders making loans of $2,500 to $10,000 must offer borrowers a credit education program or seminar (provided by the lender or an independent third party) that has been previously reviewed and approved by the commissioner before disbursing loan proceeds.

Removed the requirement that credit education programs must cover specific topics including the value of establishing a credit score, ways to establish and improve a credit score, factors impacting credit scores, how to check one's credit score, how to obtain a free credit report, and how to dispute errors in a credit report.

Removed provisions requiring finance lenders to report borrower payment performance to at least one nationwide consumer reporting agency, including specific deadlines for existing and newly licensed lenders to obtain data furnisher approval.

The bill's scope narrowed from covering both CCFPL enforcement authority and credit education requirements for small-dollar loans to covering only the CCFPL enforcement carve-out. The legislative digest was updated accordingly, dropping the 'Consumer loans' reference.

Header changed from Senate Bill passage information to 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' with Chapter 355 designation and Governor's approval date of October 6, 2025.

Page numbers and line formatting were adjusted to match the official chaptered format (page 97 became page 96).

The legislative counsel's digest was reformatted but contains identical substantive content.