The California Legislature enacted the Rees-Levering Automobile Sales Act (the “ASFA”) in 1961. It is one of California’s most effective consumer protection statutes. It complements the Federal Truth in Lending Act (15 U.S.C. §: 1601 et seq.) and requires that car buying Californians receive specific, mandatory disclosures prior to obtaining financing for vehicle purchases. It includes a powerful remedy to ensure that car dealers comply with the statute’s terms: If a dealership violates the ASFA’s disclosure obligations, the car buyer is entitled to rescind the transaction and get his or her money back. The buyer need not prove reliance or damage – a dealer’s failure to make the requisite disclosures is sufficient grounds for rescission.
