Section 1061 - Unfair, Deceptive, and Abusive Acts and Practices(a) It is unlawful for a covered provider to engage or have engaged in any unfair, deceptive, or abusive act or practice in connection with the offering or provision of commercial financing or another financial product or service to a covered entity.(b) An act or practice is unfair if either: (1)(A) The act or practice causes or is likely to cause substantial injury to covered entities;(B) the injury is not reasonably avoidable by covered entities; and(C) the injury is not outweighed by countervailing benefits to covered entities or to competition.(2) The act or practice is unfair in accordance with Business and Professions Code section 17200 and the case law thereunder.(c) An act or practice, including a representation or omission, is deceptive if either: (1)(A) The act or practice misleads or is likely to mislead the covered entity;(B) the covered entity's interpretation of the act or practice is reasonable under the circumstances; and(C) the act or practice is material.(2) The act or practice is deceptive in accordance with Business and Professions Code section 17200 and the case law thereunder.(d) An act or practice is abusive if either: (1) The act or practice materially interferes with the ability of a covered entity to understand a term or condition of commercial financing or another financial product or service.(2) The act or practice takes unreasonable advantage of:(A) a lack of understanding on the part of the covered entity of the material risks, costs, or conditions of the commercial financing or other financial product or service;(B) the inability of the covered entity to protect its interests in selecting or using commercial financing or another financial product or service; or(C) the reasonable reliance by the covered entity on a covered provider to act in the interests of the covered entity.(e) In any action brought under Financial Code section 90015 for violations of this section, the commissioner may include a claim for ancillary relief as set forth in section 90012, subdivision (b).Cal. Code Regs. Tit. 10, § 1061
1. New section filed 8-2-2023; operative 10-1-2023 (Register 2023, No. 31). Note: Authority cited: Section 90009, Financial Code. Reference: Sections 90005, 90009, 90012 and 90015, Financial Code.
1. New section filed 8-2-2023; operative 10/1/2023 (Register 2023, No. 31).