Title CIV — California Civ. Code

The provisions of this chapter shall not apply to any premium finance agreement entered into by an industrial loan company pursuant to Chapter 8 (commencing with Section 18560) of Division 7 of the Financial Code.

Unless the context or subject matter otherwise requires, the definitions given in this article govern the construction of this chapter.

“Goods” means tangible chattels bought for use primarily for personal, family or household purposes, including certificates or coupons exchangeable for such goods, and including goods which, at the time of the sale or subsequently are to be so affixed to real property as to becom…

“Finance charge” means the amount however denominated or expressed which the retail buyer contracts to pay or pays for the privilege of purchasing goods or services to be paid for by the buyer in installments. “Finance charge” does not include the amounts, if any, charged for ins…

(a) “Amount financed” means the amount required to be disclosed pursuant to paragraph (7) of subdivision (c) of Section 1803.3. (b) “Unpaid balance” means the cash price of the goods or services which are the subject matter of the retail installment sale, plus the amounts, if any…

“Total of payments” means the amount required to be disclosed pursuant to subdivision (h) of Section 226.18 of Regulation Z. The term includes any portion of the downpayment deferred until not later than the second otherwise scheduled payment and which is not subject to a finance…

“Holder” means the retail seller who acquires a retail installment contract or installment account executed, incurred or entered into by a retail buyer, or if the contract or installment account is purchased by a financing agency or other assignee, the financing agency or other a…

“Official fees” means the fees required by law and actually to be paid to the appropriate public officer to perfect a lien or other security interest, on or in goods, retained or taken by a seller under a retail installment contract or installment account, and license, certificat…

“Person” means an individual, partnership, corporation, limited liability company, association or other group, however organized.

“Financing agency” means a person engaged in this State in whole or in part in the business of purchasing retail installment contracts, or installment accounts from one or more retail sellers. The term includes but is not limited to a bank, trust company, private banker, or inves…

“Billing cycle” means the time interval between regular monthly billing statement dates.

“Regulation Z” means any rule, regulation, or interpretation promulgated by the Board of Governors of the Federal Reserve System (“Board”) under the Federal Truth in Lending Act, as amended (15 U.S.C. 1601, et seq.), and any interpretation or approval issued by an official or emp…

(a) For the purposes of this chapter, a retail installment contract, contract, retail installment account, installment account, or revolving account shall be deemed to have been made in this state and, therefore, subject to the provisions of this chapter, if either the seller off…

“Services” means work, labor and services, for other than a commercial or business use, including services furnished in connection with the sale or repair of goods as defined in Section 1802.1 or furnished in connection with the repair of motor vehicles (except for service contra…

“Simple-interest basis” means the determination of a finance charge, other than an administrative finance charge, by applying a constant rate to the unpaid balance as it changes from time to time, either: (a) Calculated on the basis of a 365-day year and actual days elapsed (alth…

“Precomputed basis” means the determination of a finance charge by multiplying the original unpaid balance of the contract by a rate and multiplying that product by the number of payment periods elapsing between the date on which the finance charge begins to be assessed and the d…

“Retail seller” or “seller” means a person engaged in the business of selling goods or furnishing services to retail buyers.

“Retail buyer” or “buyer” means a person who buys goods or obtains services from a retail seller in a retail installment sale and not principally for the purpose of resale.

“Retail installment sale” or “sale” means the sale of goods or the furnishing of services by a retail seller to a retail buyer for a deferred payment price payable in installments.

“Retail installment contract” or “contract” means any contract for a retail installment sale between a buyer and seller, entered into or performed in this state, which provides for (a) repayment in installments, whether or not such contract contains a title retention provision, a…

“Retail installment account” or “installment account” or “revolving account” means an account established by an agreement entered into in this state, pursuant to which the buyer promises to pay, in installments, to a retail seller, his outstanding balance incurred in retail insta…

“Cash price” means the cash price stated in a retail installment contract for which the seller would sell or furnish to the buyer and the buyer would buy or obtain from the seller the goods or services which are the subject matter of a retail installment contract if the sale were…

“Total sale price” means the total of the cash price of the goods or services, the amounts, if any, included for insurance, official fees, and the finance charge.

A retail installment contract shall be dated and in writing; the printed portion thereof shall be in at least eight-point type.

It shall be unlawful for any seller to induce or attempt to induce any person to enter into a contract subject to this act by offering a rebate, discount, commission, or other consideration, contingent upon the happening of a future event, on the condition that the buyer either s…

It shall be unlawful for any seller to solicit buyers, in any advertisement, to enter into a retail installment contract with it if the seller does not intend to sell that retail installment contract to a financing agency or other assignee, unless the advertisement clearly states…

Except as provided in Section 1808.3, every retail installment contract shall be contained in a single document that shall contain: (a) The entire agreement of the parties with respect to the cost and terms of payment for the goods and services, including any promissory notes or …

Except as provided in Article 8 (commencing with Section 1808.1) of this chapter, a contract shall contain the following: (a) The names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and …

The seller shall not obtain the signature of the buyer to a contract when it contains blank spaces to be filled in after it has been signed.

If the cost of any insurance is included in the contract and a separate charge is made to the buyer for such insurance: (a) The contract shall state whether the insurance is to be procured by the buyer or the seller. (b) The amount, included for such insurance, shall not exceed t…

(a) A contract may provide that for each installment in default the buyer shall pay a delinquency charge not in excess of one of the following amounts: (1) For a period in default of not less than 10 days, an amount not in excess of ten dollars ($10). (2) For a period in default …

The seller shall deliver to the buyer at the time of the buyer’s signature a legible copy of the contract or of any other document which the seller has required or requested the buyer to sign, and which he has signed, during the contract negotiation. In addition to the penalties …

Retail installment sales negotiated and entered into by mail or telephone without personal solicitation by a salesman or other representative of the seller, where the seller’s cash and deferred payment prices and other terms are clearly set forth in a catalog or other printed sol…

If it is explicitly understood between the seller and the buyer that all or any part of the cash price will be paid from the proceeds of a loan to be obtained by the buyer from a third party, the contract of sale or purchase order may be rescinded at the election of the buyer, an…

No contract or obligation shall contain any provision by which: (a) The buyer agrees not to assert against a seller a claim or defense arising out of the sale or agrees not to assert against an assignee such a claim or defense other than as provided in Section 1804.2. (b) In the …

(a) An assignee of the seller’s rights is subject to all equities and defenses of the buyer against the seller arising out of the sale, notwithstanding an agreement to the contrary, but the assignee’s liability may not exceed the amount of the debt owing to the assignee at the ti…

(a) No contract other than one for services shall provide for a security interest in any goods theretofore fully paid for or which have not been sold by the seller. (b) Any contract for goods which provides for a security interest in real property where the primary goods sold are…

Any provision in a contract which is prohibited by this chapter shall be void but shall not otherwise affect the validity of the contract.

The holder of the contract shall not charge, collect, or receive a finance charge which exceeds the dollar amount shown pursuant to subdivision (b) of Section 1803.3, except to the extent (a) caused by the holder’s receipt of one or more payments under a contract which provides f…

Contracts may be payable in successive monthly, semimonthly or weekly installments.

The finance charge shall be inclusive of all charges incident to investigating and making the contract and for the extension of the credit provided for in the contract, and no fee, expense or other charge whatsoever shall be taken, received, reserved or contracted for except as o…

(a) Notwithstanding the provisions of any contract to the contrary, except as provided in subdivision (b) or (c), no retail seller shall assess any finance charge for goods purchased under a retail installment contract until the goods are in the buyer’s possession. (b) A finance …

All contracts entered into between a buyer and a seller on or after January 1, 1983, shall provide for the calculation of the finance charge contemplated by item (1) of subdivision (a) of Section 1805.1 on the simple-interest basis if the date on which the final installment is du…

The maximum rate of finance charge which may be imposed on amounts advanced by the holder subsequent to the execution of the contract for insurance, repairs to or preservation of the goods, or preservation of the holder’s security interest therein, shall not exceed the annual per…

No contract shall provide for a finance charge which is determined in part by the precomputed basis and in part by the simple-interest basis, except for any finance charge permitted by Section 1805.8.

Unless the buyer has notice of actual or intended assignment of a contract or installment account, payment thereunder made by the buyer to the last known holder of such contract or installment account, shall to the extent of the payment, discharge the buyer’s obligation.

At any time after its execution, but not later than one year after the last payment thereunder, the holder of a contract shall, upon written request of the buyer made in good faith, promptly give or forward to the buyer a detailed written statement which will state with accuracy …

(a) Notwithstanding any provision of a contract to the contrary, the buyer may pay at any time before maturity the entire indebtedness evidenced by the contract without penalty. In the event of prepayment in full: (1) If the finance charge was determined on the precomputed basis,…

After the payment of all sums for which the buyer is obligated under a contract and upon demand made by the buyer, the holder shall deliver, or mail to the buyer at his last known address, such one or more good and sufficient instruments as may be necessary to acknowledge payment…

(a) The holder of a retail installment contract may, upon agreement with the buyer, extend the scheduled due date or defer the scheduled payment of all or of any part of any installment or installments payable thereunder. No charge shall be made for any such extension or defermen…