Solicitations For Financial Services - - CA Business And Professions

Section § 14700

This section defines what the terms "lender" and "financial services" mean in the context of this chapter. A "lender" includes various financial institutions like banks and credit unions that are licensed to make loans in California. "Financial services" refers to services or products that are specifically outlined in another federal law.

(a) “Lender” as used in this chapter means a bank, savings and loan association, savings bank, credit union, industrial bank, or other lender licensed to make loans in California or a subsidiary or an affiliate of one of those entities.

(b) “Financial services” as used in this chapter means financial services or products that are considered to be financial in nature as described in Section 1843(k) of Title 12 of the United States Code.

lender definition financial services definition banks credit unions licensed to make loans subsidiary affiliate savings bank industrial bank financial products United States Code Section 1843(k) Title 12 financial in nature

(Added by Stats. 2004, Ch. 197, Sec. 1. Effective January 1, 2005.)

Section § 14701

This law makes it clear that if you're sending out marketing materials and you want to mention a lender's name, logo, or tagline, you need to get their permission first. If you don't have permission, you must include a clear statement saying you're not connected to or supported by that lender, and this statement needs to be easily noticeable. It's also important not to use a lender's name or something similar that might confuse people into thinking that lender supports or is associated with your services.

(a) No person shall include the name, trade name, logo, or tagline of a lender in a written solicitation for financial services directed to a consumer who has obtained a loan from the lender without the consent of the lender, unless the solicitation clearly and conspicuously states that the person is not sponsored by or affiliated with the lender and that the solicitation is not authorized by the lender, which shall be identified by name. This statement shall be made in close proximity to, and in the same or larger font size as, the first and the most prominent use or uses of the name, trade name, logo, or tagline in the solicitation, including on an envelope or through an envelope window containing the solicitation.

(b) No person shall use the name of a lender or a name similar to that of a lender in a solicitation for financial services directed to consumers if that use could cause a reasonable person to be confused, mistaken, or deceived initially or otherwise as to either of the following:

(1) The lender’s sponsorship, affiliation, connection, or association with the person using the name.

(2) The lender’s approval or endorsement of the person using the name or the person’s services or products.

financial solicitation lender consent trade name use logo use restrictions consumer protection solicitation clarity endorsement misrepresentation affiliation disclosure deceptive marketing practices brand impersonation misleading consumers loan marketing marketing authorization consumer solicitation transparency branding in financial offers

(Added by Stats. 2004, Ch. 197, Sec. 1. Effective January 1, 2005.)

Section § 14702

'If you are sending out ads or offers that mention someone's loan details, like their loan number or amount, you need to get their permission first. Otherwise, you have to clearly state that your offer isn't from the lender and that you aren't connected to them. Plus, you must confirm that the lender didn't give you the person's loan info, and this notice must be easy to spot right alongside where you mention the loan details.'

No person shall include a consumer’s loan number or loan amount, whether or not publicly available, in a solicitation for services or products without the consent of the consumer, unless the solicitation clearly and conspicuously states, when applicable, that the person is not sponsored by or affiliated with the lender and that the solicitation is not authorized by the lender, and states that the consumer’s loan information was not provided to that person by that lender. This statement shall be made in close proximity to, and in the same or larger font as, the first and the most prominent use or uses of the consumer’s loan information in the solicitation, including on an envelope or through an envelope window containing the solicitation.

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(Added by Stats. 2004, Ch. 197, Sec. 1. Effective January 1, 2005.)

Section § 14703

This law says it's okay to use a company's name, logo, or tagline in an ad or service comparison without needing a specific disclaimer, as long as it's only for comparing similar services or products and the advertisement clearly shows who you are. It also says that this rule doesn't change any existing laws about trademarks or trade names in the state.

It is not a violation of this chapter for a person in an advertisement or solicitation for services or products to use the name, trade name, logo, or tagline of a lender without the statement described in subdivision (a) of Section 14701 if that use is exclusively part of a comparison of like services or products in which the person clearly and conspicuously identifies itself or that otherwise constitutes nominative fair use. Nothing in this chapter shall be deemed or interpreted to alter or modify the trade name and trademark laws of this state, including Chapter 2 (commencing with Section 14200) and Chapter 3 (commencing with Section 14400).

advertisement comparison nominative fair use trademark laws trade name logo usage tagline usage service comparison disclaimer exemption lender name advertising rules product comparison

(Added by Stats. 2004, Ch. 197, Sec. 1. Effective January 1, 2005.)

Section § 14704

If someone breaks the rules about using another's trademark according to Section 14701 or 14702, they can be stopped by a court order even if there's no proof of actual damage. For certain violations, showing that consumers were confused can count as initial proof of harm. If proven, the plaintiff can also claim any actual damages they suffered.

The winning side in such a lawsuit can get their legal costs and attorney's fees covered.

(a) A person who violates Section 14701 or 14702 shall be subject to an injunction against that use. In an action to enjoin a violation of subdivision (a) of Section 14701 or Section 14702, it is not necessary to allege or to prove actual damage to the plaintiff, and irreparable harm and interim harm to the plaintiff shall be presumed. In the action to enjoin a violation of subdivision (b) of Section 14701, affidavits that show consumers were confused, mistaken, or deceived as to a matter described in subdivision (b) of Section 14701 is prima facie evidence of damage and injury to the plaintiff. In addition to injunctive relief, the plaintiff is entitled to recover in the action the amount of the actual damages, if any, it sustained.

(b) The prevailing party in an action brought under this chapter is entitled to recover its costs and reasonable attorney’s fees as the court may determine.

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(Added by Stats. 2004, Ch. 197, Sec. 1. Effective January 1, 2005.)