CA SB956

Establishes the Buy-Here-Pay-Here Automobile Dealers Act, defining "buy-here-pay-here" dealers as those who assign less than 90% of their conditional sale or lease contracts to third-party finance sources within 45 days.

Requires buy-here-pay-here dealers to obtain a California Finance Lenders Law license from the Department of Corporations within six months of meeting the definition.

Caps annual interest rates at the federal funds rate plus 17% and prohibits repossession for 16 days after a payment due date; limits repossession fees to $500 and requires use of licensed repossession agencies.

Mandates that contracts include a specific notice in 8-point boldface informing buyers of their rights, complaint procedures, and that dealers cannot unilaterally change financing or payment terms.

Provides a 45-day grace period for buyers to pay delinquency charges, penalty interest, and fees after bringing delinquent payments current.