Takes Effect

Takes effect

California Crime, police and courts

Penalty for filing a false lien or lawsuit to harass someone triples to $15,000

Knowingly filing a false lawsuit, lien or other encumbrance to harass someone carries a civil penalty of up to $15,000, up from $5,000, and liens include financing statements. People named in an unauthorized financing statement can file an affidavit to have it terminated.

Who it affects

People targeted by false liens and those who file them

When

This law takes effect on January 1, 2027. California laws take effect on January 1 of the year after they are signed, unless the law says otherwise.

Official text

California AB 501: Lawsuits, liens, and other encumbrances.
On California Legislative Information. The official text is what counts; read it before you act.

Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.

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