CA AB78

Increases the maximum attorney's fees recoverable in contract actions based on book accounts for personal, family, or household purposes from $960 to $1,200

Increases the maximum attorney's fees for all other book account contract actions from $1,200 to $1,600

Maintains the alternative cap of 25% of the principal obligation owing on the contract, with courts awarding the lesser of the flat cap or the percentage

Exempts insurance companies, banks, savings associations, credit unions, and licensed consumer/commercial finance lenders from the attorney's fees provisions

Approved by the Governor and filed with the Secretary of State on July 14, 2025