(a) An annual percentage rate disclosed pursuant to these rules shall be considered accurate if: (1) It is not more than 1/8 of 1 percentage point below the annual percentage rate determined in accordance with subdivision (a) of section 940;(2) In an irregular transaction, it is not more than 1/4 of 1 percentage point below the annual percentage rate determined in accordance with subdivision (a) of section 940. For purposes of this paragraph, an irregular transaction is one that includes one or more of the following features: multiple advances, irregular payment periods, or irregular payment amounts (other than an irregular first period or an irregular first or final payment); or(3) The percentage difference between the annual percentage rate determined in accordance with subdivision (a) of section 940 and the annual percentage rate disclosed pursuant to sections 910 through 917 is 2.5 percent or less. The percentage difference shall be calculated as follows: The annual percentage rate disclosed pursuant to sections 910 through 917 shall be subtracted from the annual percentage rate determined in accordance with subdivision (a) of section 940, and the resulting difference shall be divided by rate disclosed pursuant to sections 910 through 917 and multiplied by 100.(b) A provider and financer shall have no liability under this subchapter for any inadvertent error in a disclosure to a recipient that does not comply with this subchapter, if within sixty days after discovering the error through the provider's or financer's own procedures, and prior to the institution of an action against the provider or financer for such error, the financer or its assignee notifies the recipient of the error and makes whatever adjustments in the appropriate account are necessary to assure that the recipient will not be required to pay an amount in excess of the finance charge actually disclosed, or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower.(c) A provider or financer shall have no liability for inadvertently disclosing a finance charge, annual percentage rate, periodic payment or irregular payment, average monthly cost, maximum non-interest finance charge, or prepayment fee or charge that exceeds the amount that the provider is required to disclose under this subchapter.Cal. Code Regs. Tit. 10, § 955
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, 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.