SECTIONS 14700-14704 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 14700-14704

14700. (a) "Lender" as used in this chapter means a bank, savings
and loan association, savings bank, credit union, industrial bank, or
other lender licensed to make loans in California or a subsidiary or
an affiliate of one of those entities.
(b) "Financial services" as used in this chapter means financial
services or products that are considered to be financial in nature as
described in Section 1843(k) of Title 12 of the United States Code.

14701. (a) No person shall include the name, trade name, logo, or
tagline of a lender in a written solicitation for financial services
directed to a consumer who has obtained a loan from the lender
without the consent of the lender, unless the solicitation clearly
and conspicuously states that the person is not sponsored by or
affiliated with the lender and that the solicitation is not
authorized by the lender, which shall be identified by name. This
statement shall be made in close proximity to, and in the same or
larger font size as, the first and the most prominent use or uses of
the name, trade name, logo, or tagline in the solicitation, including
on an envelope or through an envelope window containing the
solicitation.
(b) No person shall use the name of a lender or a name similar to
that of a lender in a solicitation for financial services directed to
consumers if that use could cause a reasonable person to be
confused, mistaken, or deceived initially or otherwise as to either
of the following:
(1) The lender's sponsorship, affiliation, connection, or
association with the person using the name.
(2) The lender's approval or endorsement of the person using the
name or the person's services or products.

14702. No person shall include a consumer's loan number or loan
amount, whether or not publicly available, in a solicitation for
services or products without the consent of the consumer, unless the
solicitation clearly and conspicuously states, when applicable, that
the person is not sponsored by or affiliated with the lender and that
the solicitation is not authorized by the lender, and states that
the consumer's loan information was not provided to that person by
that lender. This statement shall be made in close proximity to, and
in the same or larger font as, the first and the most prominent use
or uses of the consumer's loan information in the solicitation,
including on an envelope or through an envelope window containing the
solicitation.

14703. It is not a violation of this chapter for a person in an
advertisement or solicitation for services or products to use the
name, trade name, logo, or tagline of a lender without the statement
described in subdivision (a) of Section 14701 if that use is
exclusively part of a comparison of like services or products in
which the person clearly and conspicuously identifies itself or that
otherwise constitutes nominative fair use. Nothing in this chapter
shall be deemed or interpreted to alter or modify the trade name and
trademark laws of this state, including Chapter 2 (commencing with
Section 14200) and Chapter 3 (commencing with Section 14400).

14704. (a) A person who violates Section 14701 or 14702 shall be
subject to an injunction against that use. In an action to enjoin a
violation of subdivision (a) of Section 14701 or Section 14702, it is
not necessary to allege or to prove actual damage to the plaintiff,
and irreparable harm and interim harm to the plaintiff shall be
presumed. In the action to enjoin a violation of subdivision (b) of
Section 14701, affidavits that show consumers were confused,
mistaken, or deceived as to a matter described in subdivision (b) of
Section 14701 is prima facie evidence of damage and injury to the
plaintiff. In addition to injunctive relief, the plaintiff is
entitled to recover in the action the amount of the actual damages,
if any, it sustained.
(b) The prevailing party in an action brought under this chapter
is entitled to recover its costs and reasonable attorney's fees as
the court may determine.