CFSC Meeting Minutes – October 16, 2024

FSC Committee Members and Friends,

Below are the CFSC Meeting Minutes for October 16, 2024

Attendance:
Co-Chair: Stefan Lawrence; Co-Chair: John Kimble; ExCom Liaison: Mark Moore; ExCom Liaison: Dan Wheeler; Section Manager: Johnny Brooks; Members: Julie Greenfield, Lauren Frank, Ted Kitada

Administrative Matters:
• The attendees introduced themselves
• Stefan Lawrence will be acting as Committee Secretary
• John Kimble will be the Committee’s Treasurer
• New member Julie Greenfield agreed to be the Committee’s Programs Chair
• New member Lauren Frank agreed to be the Committee’s Legislative Chair
• The 2025 CLA Annual Meeting will be September 11-13 in Los Angeles
• The group discussed revamping the Committee’s internet site to add various resources and keep current, e.g., an annual calendar of upcoming meetings, past meeting minutes, Committee newsletters, podcasts/recordings of past presentations, etc.
• The group also discussed reviewing and ensuring the Constituency List is up-to-date
• Mark Moore encouraged members to publish articles of interest, which could include firm newsletters/blogposts, etc.
• Stefan Lawrence suggested adding links to the Committee’s resources (articles, calendar invites, etc.) such that when one clicks on the link it allows the resource to be disseminated through the reader’s LinkedIn profile to his/her contacts; Stefan will provide Johnny with a sample

Presentation(s):
Stefan Lawrence presented on California Governor Newsom’s recent signing of various consumer protection bills targeting, among other things, medical debt, overdraft fees, and unfair subscription practices, including:
• AB 2863: AB 2863 addresses complicated auto-renewing subscription services that are simple to sign up for but difficult to cancel. The bill requires companies offering such automatic renewals and continuous services to provide consumers a means to cancel their subscription using the same medium they used to sign up.
• AB 2017 & SB 1075: Addressing unfair banking practices, specifically, NSF and OD fees. AB 2017 prohibits banks and credit unions from charging nonsufficient funds fees when a transaction is declined for insufficient funds. SB1075 caps the amount of overdraft fees credit unions can charge.

Ted Kitada presented on AB 279 addressing attorney-client trust accounts. Specifically, the bill amends various sections of the Business and Professions Code, and among other things allows the State Bard to conduct audits of client trust accounts. Under B&P section 6091.3 and 6091.4, financial institutions must collect an attorney’s license number when creating a new client trust account, and before July 2026 licensed attorneys maintaining existing trust accounts must provide their Bar license number to financial institutions where their client trust accounts are held. Annually, financial institutions must provide certain information regarding client trust accounts they house with the State Bar.

John Kimble presented on the Office of Administrative Law’s (OAL) thirty-day timeframe to review the Department of Financial Protection and Innovation’s (DFPI) rulemaking for providers of earned wage access (EWA), income share agreements (ISA), debt settlement, and student debt relief are as of October 11. John to provide short legal update on this issue for the CFSC Constituency.

Stefan Lawrence presented on the case of Marshall v. Georgetown Memorial Hospital, wherein the Fourth Circuit affirmed denial of a motion to compel arbitration, finding that a duty to read a digital contract does not require a party to scroll through multiple pages of hyperlinks.

Julie Greenfield presented on AB 3108, signed by Governor Newsom on September 24, which makes it felony mortgage fraud for a mortgage broker or mortgage loan originator to intentionally:
• Instruct or otherwise deliberately cause a Borrower to sign documents reflecting the terms of a business, commercial or agricultural loan with knowledge that the Borrower intends to use the loan proceeds primarily for personal, family or household use.
• Instruct or otherwise deliberately cause a Borrower to sign documents reflecting the terms of a bridge loan, with knowledge that the loan proceeds will not be used to acquire or construct a new dwelling.

Housekeeping:
• Dan Wheeler and John Kimble to present future presentation (perhaps at the November meeting) on the Earned Wage Access regulations, in podcast format.