Assemblywoman Pilar Schiavo, D-Chatsworth, has pushed two consumer protection bills forward for Gov. Gavin Newsom to sign into law by the end of September, she announced in a news conference held at her district office Thursday in Valencia.
Schiavo said Assembly Bills 2863 and 2424 are meant to help community members struggling to afford their basic needs.
“When a box of cereal is $8, recovering precious dollars from an unwanted $8 a month subscription can feed your kid for a week,” Schiavo said at the news conference. “And that’s why our coalition stepped up, my office, in collaboration with the Consumer Federation and consumer advocates, to really take action this legislative year.”
“Click to Cancel” (AB 2863) is designed to address the frustrations and challenges consumers go through when trying to cancel a subscription, said Schiavo. The idea is that it will take only one or two clicks to cancel a subscription instead of going through phone calls or emails. Companies will now have to be straightforward about their cancellation policies and auto-renewal, she said.
“Some companies who don’t want to play by the rules, they want to make it so hard on you, like you’re a hamster in a maze that you can never get out of,” Robert Herrell, executive director of the Consumer Federation of California, said at the news conference. “That’s purposeful. That’s not a bug of the system, that’s a feature of the system, and it needs to stop. And this bill will go a long way.”
“Protecting Homeowners During Foreclosure” (AB2424) is designed to safeguard homeowners who face the threat of foreclosure, Schiavo said. The bill aims for transparency in the foreclosure process between homeowners and lenders.
Farzad Rad spoke on behalf of his mother who lost her home and entire life savings because a loan broker promised to help her out.
“After my dad died in 2016 my mom began to struggle financially. She fell behind on her mortgage and was contacted by a loan broker who promised to help her save her home. That broker scammed my mom into taking a predatory loan,” said Rad.
Schiavo said it was stories like Rad’s that made her office take action. She believes the governor will sign the bills.
