District Court Orders Continuation of Case Against California Commercial Finance Disclosure Regulations

According to deBanked, a challenge to commercial finance disclosure regulations in California will continue in district court after district judge R. Gary Klausner rebuked a motion for dismissal from the California Department of Financial Protection and Innovation.

The Small Business Finance Association filed a lawsuit in the U.S. District Court for the Central District of California against Clothilde Hewlett, the commissioner of the California Department of Financial Protection and Innovation, in December. According to deBanked, the suit contests the constitutional legitimacy of California’s commercial finance disclosure laws while arguing that such regulations “are preempted by the federal Truth in Lending Act.”