Existing law generally regulates financial institutions, including the California Consumer Financial Protection Law that, among other things, requires the Department of Financial Protection and Innovation to exercise nonexclusive oversight and enforcement authority under California consumer financial laws.

This bill would require a depository institution, as defined, to take certain actions that would help protect its customers from financial abuse and deception, as defined, including by requiring a depository institution that suspects financial abuse or deception with respect to any transaction to employ certain preventive measures, as prescribed, except as specified.

This bill would authorize a customer who has suffered harm from financial abuse or deception and did not receive a required preventive measure to, within 60 calendar days of the relevant suspect transaction, provide oral or written notice to the depository institution, as specified. The bill would require a financial institution to investigate the noticed transaction and relevant account history and would provide a liability shield to a financial institution that refunds the amount of the suspect transaction plus interest, as prescribed.

This bill would authorize a customer to bring a civil action to enforce its provisions, as specified.