Civil Code section 1810.1

Notwithstanding any other provisions of this article to the contrary, before the first transaction is made on any retail installment account, the seller shall disclose to the buyer in a single written statement, which the buyer may retain, in terminology consistent with the requirements of Section 1810.3, each of the following items, to the extent applicable:

(a)

The conditions under which a finance charge may be imposed, including an explanation of the time period, if any, within which any credit extended may be paid without incurring a finance charge.

(b)

The method of determining the balance upon which a finance charge may be imposed.

(c)

The method of determining the amount of the finance charge, including the method of determining any minimum, charge which may be imposed as a finance charge.

(d)

Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and the corresponding annual percentage rate determined by multiplying the periodic rate by the number of periods in a year.

(e)

The conditions under which any other charges may be imposed, and the method by which they will be determined.

(f)

The conditions under which the creditor may retain or acquire any security interest in any property to secure the payment of any credit extended on the account, and a description or identification of the type of the interest or interests which may be so retained, or acquired.

(g)

The minimum periodic payment required.
In addition to the penalties provided under Article 12.2 (commencing with Section 1812.6) of this chapter, until the seller delivers the written statement required by this section, the buyer shall be obligated to pay only the cash price of the goods or services.

Source: Section 1810.1, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CIV§ionNum=1810.­1.­ (accessed May 14, 2025).

Last Updated

May 12, 2025

§ 1810.1’s source at ca​.gov