Section 901 - General Requirements(a) Disclosures provided in accordance with sections 22800 through 22804 of the code shall comply with the following requirements.(1) At the top of the disclosure, centered on the page or other display medium, the provider shall print "OFFER SUMMARY -" in bold font, followed by a one- to five-word description of the type of product offered (e.g., "Merchant Cash Advance") which may include the financer's branding terminology.(2) For any disclosure required to comply with section 920, subdivision (a), at the bottom of the disclosure, below any other information required by this subchapter, the provider shall print the following statement: "Applicable law requires this information to be provided to you to help you make an informed decision. By signing below, you are confirming that you received this information." Below the statement, the provider shall include a space for the recipient to sign the form labeled "Recipient Signature" and a space for the recipient to write the date of their signature, labeled "Date."(3) For any disclosure other than a disclosure required to comply with section 920, subdivision (a), at the bottom of the disclosure, below any other information required by this subchapter, the provider shall include the following statement: "Applicable law requires this information to be provided to you to help you make an informed decision."(4) If the term or estimated term of a transaction is: (A) One year or less, the term or estimated term shall be disclosed in days;(B) Greater than one year, the term or estimated term shall be disclosed in units of years and months, with any remaining days expressed as a portion of a month to the nearest two decimal points.(5) The annual percentage rate shall be expressed to the nearest ten basis points. For example: "10.45%."(6) The disclosures shall be presented to the recipient as a separate document from any other contract, agreement, or other disclosure document provided to the recipient, but may be mailed or transmitted in a package that contains other documents.(7) Fonts (A) The provider may present the required disclosure in fonts and colors that are clear, complete, conspicuous, easy to compare with other disclosures, and consistent with the requirements of this subchapter. A provider shall not use colors and fonts that make any enumerated terms required by section 22802, subdivision (b), of the code more clear or conspicuous than any other term required by that subdivision.(B) A provider shall use fonts for the disclosures substantially similar in size to: (i) Times New Roman 12- to 14-point font, for information appearing in the first and second columns where those columns are not combined with other columns.(ii) Times New Roman 10- to 12-point font, for information appearing in the third column, information appearing in cells where the second and third columns are combined, and information appearing in cells where the first, second, and third columns are combined.(iii) Times New Roman 16-point font for the content required by subdivision (a)(1) of this section.(C) Notwithstanding subdivision (a)(7)(B), a provider may use a font substantially similar in size to Times New Roman 16-point font for "OFFER SUMMARY -" and content appearing in the first and second columns of the disclosure where those columns are not combined with other columns.(D) A provider may deviate from the font requirements described in subdivisions (a)(7)(B) and (C) if the provider makes a good faith determination that deviating from the standards is necessary:(i) To comply with the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.); or(ii) For clarity based upon the medium (e.g., mobile device) in which the disclosure will be presented.(8) A provider shall ensure that the width of the columns in the required disclosure is such that the disclosure does not unnecessarily extend onto multiple pages. A provider that formats the columns in the required disclosure such that the ratio between the first, second and third columns is 3:3:7 complies with the requirements of this subdivision.(9) Where a provider is required or permitted to provide a "short explanation" under this subchapter, the provider shall provide an explanation of not more than 60 words.(10) Each of the cells in the required disclosures shall be outlined.(11) If disclosures are provided to a recipient electronically, the provider shall include a method for the recipient to submit an electronic signature that complies with Civil Code section 1633.2, subdivision (h), and automatic date stamp to comply with subdivision (a)(2) of this section and provide the recipient with the ability to receive a copy of the disclosure in a format that the recipient may keep. A format the recipient may keep includes hard copy disclosures, and electronic documents containing the required disclosures that the customer can save indefinitely for future reference.(12) Except with respect to sales-based financing, if a provider must make estimates or assumptions to provide any disclosure required by this chapter, the provider shall: (A) Base those estimates or assumptions on the best information reasonably available to the provider at the time of the disclosure;(B) State clearly that any disclosure based upon an estimate or assumption is an estimate by adding the word "estimate" to the descriptive language of any required disclosure under this chapter; and(C) State clearly any assumptions or estimates used as the basis for the disclosure in any explanation or description associated with the disclosure.(13) When making the disclosures required by this subchapter, for transactions where the applicable interest rate adjusts over time and the interest rate applicable for the entire term of the transaction cannot be calculated in advance, the provider shall assume that the applicable interest rate is the initial interest rate for any period when the interest rate cannot be calculated in advance.(14) Numerical values, including but not limited to percentages, dates, and dollar amounts, shall be expressed numerically, such as "23" and not alphabetically, such as "twenty-three."(15) If a provider issues a disclosure where the amount financed includes funds used to pay down or pay off other amounts owed by the recipient that may change over time, and the amount due in connection with those amounts owed changes prior to consummation of the agreement between the financer and the recipient, the provider need not provide a new disclosure to the recipient solely because the amount due in connection with those amounts owed has changed.(16) A provider may disregard the effects of the following in making calculations and disclosures: (A) That payments must be collected in whole cents.(B) That dates of scheduled payments and advances may be changed because the scheduled date is not a business day.(C) That months have different numbers of days.(D) The occurrence of leap years.(17) Notwithstanding subparagraph (a)(16)(A), any dollar amount disclosed to a recipient shall not be disclosed using fractions of a cent (ex. $4.025 or $4.02 and 1/2 cents).Cal. Code Regs. Tit. 10, § 901
1. New section filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section 11343.4(b)(2) (Register 2022, No. 23). Transmission deadline specified in Government Code section 11346.4(b) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20. Note: Authority cited: Sections 321 and 22804, Financial Code. Reference: Sections 22800, 22801, 22802, 22803 and 22804, Financial Code.
1. New section filed 6-9-2022; operative 12/9/2022 pursuant to Government Code section 11343.4(b)(2) (Register 2022, No. 23). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.