Retail installment contracts.
By expanding the specifications for retail installment contracts from 8-point to 12-point font, SB 80 is anticipated to have implications on consumer rights and protection laws within California. This legislative change aligns with broader efforts to prioritize consumer readability of financial documents and may encourage other states to adopt similar standards. As the bill expands the scope of what constitutes a crime under existing law, it introduces a state-mandated program, which may necessitate the involvement of regulatory agencies to ensure compliance among businesses.
Senate Bill 80, introduced by Senator Laird, seeks to amend Section 1803.1 of the Civil Code related to retail installment contracts. Under current law, the Unruh Act necessitates that such contracts be dated, in writing, and printed in a minimum font size of 8-point. SB 80 proposes to increase this font size to 12-point starting July 1, 2024. This enhancement aims to improve legibility and accessibility for consumers involved in retail financing agreements, thereby promoting informed decision-making during the contract signing process.
A notable aspect of SB 80 is its inclusion of a provision stating that no reimbursement is required for local agencies or school districts for costs mandated by the state that arise from the enactment of this bill. This raises questions of fiscal responsibility and the burden placed on local governments that may need to adapt to these new requirements without state funding. Some stakeholders may argue that such mandates could strain local resources, particularly if the new requirements lead to significant changes in legal documentation practices.