Chapter 4Prohibited Acts

Section § 90003

Explanation

This law makes it illegal for certain people and companies dealing with consumer financial products or services to engage in unfair, deceptive, or abusive acts. They must follow all consumer financial laws and cooperate with regulatory authorities by, for example, allowing access to records. If someone helps a violator by providing support knowingly or recklessly, they are also considered in violation, except for simply providing advertising space or time.

(a)CA Financial Code § 90003(a) It is unlawful for a covered person or service provider, as defined in subdivision (f) of Section 90005, to do any of the following:
(1)CA Financial Code § 90003(a)(1) Engage, have engaged, or propose to engage in any unlawful, unfair, deceptive, or abusive act or practice with respect to consumer financial products or services.
(2)CA Financial Code § 90003(a)(2) Offer or provide to a consumer any financial product or service not in conformity with any consumer financial law or otherwise commit any act or omission in violation of a consumer financial law.
(3)CA Financial Code § 90003(a)(3) Fail or refuse, as required by a consumer financial law or any rule or order issued by the department thereunder, to do any of the following:
(A)CA Financial Code § 90003(a)(3)(A) Permit the department access to or copying of records.
(B)CA Financial Code § 90003(a)(3)(B) Establish or maintain records.
(C)CA Financial Code § 90003(a)(3)(C) Make reports or provide information to the department.
(b)CA Financial Code § 90003(b) For any person who knowingly or recklessly provides substantial assistance to a covered person or service provider in violation of subdivision (a) or any rule or order issued thereunder, the provider of that substantial assistance shall be deemed to be in violation of that section to the same extent as the person to whom that assistance is provided.
(c)CA Financial Code § 90003(c) Notwithstanding subdivision (b), a person shall not be held to have violated paragraph (1) of subdivision (a) solely by virtue of providing or selling time or space to a covered person or service provider placing an advertisement.
consumer financial products unlawful financial practices unfair acts deceptive financial practices abusive financial practices consumer financial law compliance regulatory cooperation record access providing substantial assistance advertisement exemption service provider obligations consumer protection financial services regulations unfair business practices
(Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)

Section § 90004

Explanation

This section of the law protects certain employees and their representatives from being unfairly fired or discriminated against for speaking up about issues related to consumer financial laws. Specifically, it protects those who have started a legal proceeding or objected to company policies they believe are illegal under these laws. The law applies to employees involved with consumer financial products or services. If someone feels wrongly terminated or discriminated against for these actions, they have legal remedies available, similar to those found in other labor law provisions.

(a)CA Financial Code § 90004(a) In addition to the prohibitions contained in Section 1102.5 of the Labor Code, a covered person or service provider shall not terminate or in any other way discriminate against, or cause to be terminated or discriminated against, any covered employee or any authorized representative of covered employees by reason of the fact that the employee or representative, whether at the initiative of the employee or in the ordinary course of the duties of the employee, or any person acting pursuant to a request of the employee, has either:
(1)CA Financial Code § 90004(a)(1) Filed or instituted, or caused to be filed or instituted, any proceeding under any consumer financial law.
(2)CA Financial Code § 90004(a)(2) Objected to, or refused to participate in, any activity, policy, practice, or assigned task that the employee or other such person reasonably believed to be in violation of any law, rule, order, standard, or prohibition, subject to the jurisdiction of, or enforceable by, the department.
(b)CA Financial Code § 90004(b) For the purposes of this section, the term “covered employee” means any individual performing tasks related to the offering or provision of a consumer financial product or service.
(c)Copy CA Financial Code § 90004(c)
(1)Copy CA Financial Code § 90004(c)(1) A person who believes that they have been terminated or otherwise discriminated against by any person in violation of subdivision (a) shall have all remedies available under Section 1102.5 of the Labor Code, subject to the restrictions set forth in that section and the implementing regulations.
(2)CA Financial Code § 90004(c)(2) This subdivision does not restrict the remedies available under this law.
employee protection financial whistleblower consumer financial laws discrimination retaliation termination for objection legal proceeding initiation consumer financial products employment discrimination financial service employees Labor Code Section 1102.5 legal protections unfair termination consumer rights whistleblower remedies
(Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)