Existing law regulates contracts and authorizes a non-negotiable written contract for the payment of money or personal property to be transferred by indorsement, in like manner with negotiable instruments. Under existing law, indorsement transferred all the rights of the assignor under the instrument to the assignee, subject to all equities and defenses existing in favor of the maker at the time of the indorsement.

This bill would provide that a plaintiff who prevails on a cause of action against a defendant named pursuant to specified federal regulations relating to the preservation of consumers’ contract claims and defenses, or pursuant to the contractual language required by those regulations, may claim attorney’s fees, costs, and expenses from that defendant to the fullest extent permissible if the plaintiff had prevailed on that cause of action against the seller.