New Law Aims to Protect Asians
A Chinese immigrant believed she had been scammed into paying exorbitant interest rates by an Alhambra car salesman who spoke her native language, Mandarin. In response, she picketed the business wrapped in a white sheet with the word “Cheaters” painted in red ink.
“She was so ignorant of her rights that this was all she could think of to do,” said Assemblywoman Judy Chu (D-Monterey Park), who wrote a bill providing more protection for Asian consumers after hearing the woman’s story.
That was two years ago, and the woman would never have contacted consumer advocates had a Chinese newspaper not reported her story. After that, a dozen more victims came forward reporting they were promised things in Chinese and duped into signing contracts in English with items they never agreed upon. Last month, the dealership, Wondries Toyota, settled a lawsuit with the customers.
Following the incident, the state Legislature passed AB 309, which takes effect July 1. It requires businesses that negotiate with customers in any of four major Asian languages to also provide contracts written in the same language.
A similar law has applied to Spanish speakers for 28 years, but the new one will include Chinese, Korean, Tagalog and Vietnamese speakers. Chu hopes it will prevent bait-and-switch tactics like those Wondries was accused of using.
Chu said the law makes sense for California, a state with a massive immigrant population. More than 12 million Californians speak a language other than English. Of that group, 8.1 million speak Spanish. There are 1.8 million people who speak the four Asian languages covered by the bill.
“The bottom line is, these companies need to market to these communities” to be competitive, Chu said.
That means car dealerships, institutions that extend credit for auto loans or loans for household items like televisions, and landlords will have to provide translated contracts if they negotiate with clients or tenants in the four Asian languages.
The law will not affect documents to open savings and checking accounts, nor will it cover home mortgages or other loans secured by real property. Contracts for services such as cellphones, cable TV, auto repair and gym membership are also exempt.
The bill’s detractors say there aren’t enough speakers of the four Asian languages to warrant it. They worry that it will discourage some financial institutions from purchasing contracts from car dealerships because they would be required to communicate in the foreign languages.
“Initially, the significant impact will be on the dealerships,” said Brian Maas, government and legal affairs counsel for the California Motor Car Dealership Assn., which lobbied against the bill in the state Legislature. “The real impact may be on the financial institutions -- banks and credit unions -- who have to respond to four additional languages. Until July 1, we’re not going to know for sure.”
Dan Faler, president and chief executive of the Apartment Owners Assn. of Southern California, opposed the law but felt it would not trouble landlords significantly. After all, he said, very few are aware that they are supposed to offer Spanish contracts when they speak to prospective tenants in Spanish.
“I just think everything should be in English,” Faler said.
An aide to Chu said a business such as a car dealership may have to pay around $1,000 to $2,000 to have its contracts translated.
Hernan D. Vera, an attorney for the Public Counsel Law Center who represented the plaintiffs in the Wondries suit, said the law should not be viewed by businesses as a threat.
“This is not a punitive statute,” he said. “It only allows a consumer to rescind a contract.”
The Department of Consumer Affairs is charged with educating consumers and businesses about the law, but no one is responsible for enforcing it. However, district attorneys and the state attorney general’s office can prosecute if they see fit, Chu’s office said.
