California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 14 — Lien, Chapter 2b — Automobile Sales Finance Act, Section 2981.8
No contract shall provide for a finance charge which is determined in part by the precomputed basis and in part by the simple-interest basis except for any finance charge permitted by subdivisions (a) and (c) of Section 2982.8.
Notes
Prohibits a contract from calculating its finance charge partly on a precomputed basis and partly on a simple-interest basis. Allows only the finance charges specifically permitted by the referenced provisions governing subsequent advances, so the contract otherwise must use one authorized finance-charge method rather than combining the two calculation bases.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2981.8 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-14/chapter-2b/section-2981-8