CA SB362

Prohibits commercial financing providers from using the terms "interest" or "rate" in deceptive ways that could mislead recipients about the cost of financing

Requires providers to state the "annual percentage rate" or "APR" whenever they communicate charges, pricing metrics, or financing amounts to potential recipients during the application process after extending a specific offer

Clarifies that using "interest" or "rate" is not deceptive when referring to an annual interest rate or APR that is fixed or floating for the financing period

Establishes that violations related to transactions subject to the California Financing Law are deemed violations of that law, while violations related to other commercial financing transactions are deemed unfair, deceptive, or abusive practices under the California Consumer Financial Protection Law

Addresses deceptive marketing practices such as describing non-annual rates as "simple interest" or using "fee rate" or "factor rate" terminology that diverges materially from the APR