WBK Industry News - State Regulatory Developments

California Revises Provisions on Consumer Credit Contracts

Governor Newsom recently approved SB 633 which requires disclosures for cosigners of consumer credit contracts even if the consigner is married to the signer.  Previously, creditors were required to provide disclosures warning individuals who consigned a consumer contract that they were potentially liable to the full debt, but creditors were not required to do this if the cosigners were married to each other. 

This bill also requires an expansion of the languages, currently English and Spanish, that disclosure notices must be translated into.  Further, the disclosure notice must be provided on a separate sheet from the contract.