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FOREIGN LANGUAGE TRANSLATION OF CONSUMER CONTRACTS
In California a person in a trade or business, who negotiates in Spanish, Chinese, Tagalog, Vietnamese, or Korean language in the course of entering into a contract with a consumer, must give the consumer a written translation of the proposed contract in the language of the negotiations. The translation must be an accurate translation of every term and condition in the
contract or agreement. This requirement of California law applies whether the negotiations are conducted orally or in writing.
The foreign language translation must be given to the consumer before the consumer signs the contract. The seller or creditor must give the consumer the foreign-language translation whether or not the consumer requests it. The foreign-language translation must include the proposed contract terms, such as purchase price, finance charges, payment amount, etc. The purpose of the law is to insure that Californians who speak a language other than
English have a genuine opportunity to read the foreign-language translation of any proposed contract that has been negotiated primarily in that language, and to consult with others, before the contract is signed. It is never sufficient for the seller or creditor to give the foreign-language-speaking person the translation after he or she has executed (signed) the contract.
If a trade or business that is required to provide a foreign-language translation fails to do so, the consumer can rescind (cancel) the contract or agreement, in which event the law governing cancellation of contracts will apply. The consumer can cancel the contract even if it has been assigned to a financial institution; but in that event, the consumer must look to the
original trade or business for a return of the amounts he or she has paid. If the consumer received any goods, the goods must be returned to the original trade or business. If a consumer rescinds, the consumer need not pay the financial institution that has received an assignment of the contract. Instead, the financial institution is entitled to return the contract to the original trade or business, and to recover from the original trade or business anything it has paid to the trade or business.
The law requiring translation of contracts negotiated in a language other than English applies to:
· Credit sale contracts involving consumer goods and services of all kinds, including automobile purchases and leases;
· Virtually all loans or other extensions of credit for use primarily for personal, family or household purposes, except loans secured by real property;
· Consumer loans secured by real property, if arranged by a real estate loan broker, or made by a personal finance company;
· Contracts for the rental, lease or sublease of apartments or other dwellings (including mobile homes) for a period longer than one month. (Month-to-month and week-to-week rental contracts are not covered)
· Contracts involving the payment of fees or charges for legal services furnished by lawyers;
· Reverse mortgages and mortgage foreclosure consulting contracts.
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