State Law Guide - Updated January 2026
California Lease Return Dispute Rights
Under California Consumer Leasing Act, California gives you the right to cancel and receive refunds on F&I products.
Quick Answer
In California, you can cancel dealer add-on products at any time. You can sue in Small Claims Court for up to $12,500.
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Key California Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Reasonable Standards | Mandated | Wear standards must be objectively reasonable |
| Itemized Statement | Required | Must receive detailed breakdown of each charge |
| Credit Card Test | Industry standard | Sub-2" damage typically considered normal wear |
| Independent Appraisal | Your right | Can obtain independent professional appraisal |
| Federal Reg M | Applies | Additional federal consumer protections |
Reasonable Standards
MandatedItemized Statement
RequiredCredit Card Test
Industry standardIndependent Appraisal
Your rightFederal Reg M
AppliesWhat California Law Requires
Your Cancellation Rights
Under California Consumer Leasing Act, California consumers have the right to cancel F&I products purchased from dealers.After this period, you're still entitled to a pro-rata refund based on unused time or mileage.
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Credit Card Test Analysis
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Average $1,200 disputed
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Frequently Asked Questions
What constitutes "normal wear" on a lease in California?
Under California law and federal Regulation M, normal wear includes minor scratches, small dents under 2 inches (Credit Card Test), light interior scuffs, and expected tire wear. Lessors cannot charge for damage that meets these standards.
Can I dispute lease-end charges in California?
Yes. You have the right to dispute any charges you believe are excessive or don't meet reasonable wear standards. Request an itemized statement, compare each charge to OEM wear guides, and dispute in writing.
What is Federal Regulation M?
Regulation M (12 CFR 1013) is federal law that protects lease consumers. It requires lessors to use "reasonable" standards for excess wear and gives you the right to an independent appraisal.
Where do I complain about unfair lease charges in California?
File complaints with the California Department of Consumer Affairs, the Attorney General's Consumer Protection office, or take the matter to Small Claims Court for amounts up to $12,500.
California Regulatory Contacts
If you need to file a complaint or seek assistance, contact these official agencies:
Contact information is provided for reference. Verify current details on official agency websites.
Compare Other States
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Based on California Consumer Leasing Act