California CodesBusiness and Professions Code - BPCDivision 7 — General Business RegulationsPart 3 — Representations to the PublicChapter 4 — Fixed Term Installment ContractsSection 17820
A seller that uses a fixed term installment contract entered into or modified on or after August 1, 2026, shall not charge an early termination fee or any similar fee in an amount greater than 30 percent of the total sum for which the consumer is obligated under the fixed term installment contract, exclusive of the application of the termination fee.
Notes
Limits an early termination fee or similar charge under a fixed-term installment contract entered into or modified on or after August 1, 2026, to no more than 30% of the consumer’s total contractual obligation, excluding the termination fee itself. The cap applies to sellers using those contracts from the stated date forward.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 17820 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-7/part-3/chapter-4/section-17820