InfoBytes Blog
California amends protections for servicemembers and veterans
On September 27, the California governor signed SB 1311 to enact the Military and Veteran Consumer Protection Act of 2022. The Act updates several provisions related to servicemembers and veterans, including amending existing law to provide that a person will be liable for an additional civil penalty of up to $2,500 for each violation if the person engages in “unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising,” against one or more servicemembers or veterans. Additionally, the Act amends certain provisions related to enforcement of the federal Military Lending Act (MLA). Specifically, the bill makes “any security interest in personal property other than a motor vehicle, off-highway vehicle, trailer, or aircraft void if it would cause a loan procured by specified service members in the course of purchasing the personal property to be exempt from the [MLA].” The Act also makes “any security interest in a motor vehicle void if it would cause a loan procured by specified service members in the course of purchasing the motor vehicle to be exempt from the [MLA] and the loan also funds the purchase of a credit insurance product or credit-related ancillary product.” The Act takes effect January 1, 2023.