When a transaction requires a disclosure as specified by the state, GreatAmerica will document this requirement on the credit approval letter that GreatAmerica provides you. The required information will be listed in the “Additional Information” section of the approval letter to ensure that a required disclosure can be completed before a financing offer is communicated to your customer in writing, as required by the state.
To ensure that the regulations are followed, GreatAmerica plans to send the disclosure document to your customer electronically for execution. Our standard approach will be for GreatAmerica to send the disclosure document to your customer along with the finance documents for the transaction, through our DocuSign account. If you need a different approach, please reach out to us to discuss. If anything about the transaction changes before we fund it, we will need to generate a new disclosure document and send it to your customer.
CA - California (Compliance Effective: December 9, 2022)
Q: What transactions will require the disclosure?
A: The law requires a disclosure for all offers of financing for which the following three things are all true:
Q: When will the disclosure be presented?
A: No later than: (i) GreatAmerica issuing a credit approval of the transaction, and (ii) a single “specific commercial financing offer” being presented in writing to the borrower, meaning the borrower is presented (a) the specific payment amounts or amounts financed for the transaction, and (b) a single rate, price or cost of the financing, whether that be via email or via hard copy.
Q: What is being disclosed?
A: Certain information about the offer to the borrower, including information concerning the financing amount, finance charges, the annual percentage rate, the total repayment amount, the term, payment amounts, other potential fees, and any prepayment costs is required to be disclosed.
Q: What will the disclosure look like?
A: Below are sample disclosures, but nuances of transactions may result in differences to the disclosures.
Sample GreatAmerica CA Disclosure
Sample Private Label CA Disclosure
NY - New York (Compliance Effective: August 1, 2023)
Q: What transactions will require the disclosure?
A: The law requires a disclosure for all offers of financing for which the following three things are all true:
Q: When must the disclosure be presented to the borrower?
A: Upon the later of: (a) a specific commercial financing offer in the form of a financing agreement being presented to the borrower, and (b) GreatAmerica issuing a credit approval of the transaction.
Q: What is being disclosed?
A: Certain information about the offer to the borrower, including information concerning the financing amount, finance charges, the annual percentage rate, the total repayment amount, the term, payment amounts, other potential fees, and any prepayment costs (including on other loan-type transactions financed by GreatAmerica) is required to be disclosed.
Q: What will the disclosure look like?
A: Below are sample disclosures, but nuances of transactions may result in differences to the disclosures.
Sample GreatAmerica Monthly New York Disclosure
Sample Private Label Monthly New York Disclosure
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The information provided in these Frequently Asked Questions (FAQs) does not, and is not intended to, constitute legal advice. All information and content provided is for general informational purposes only. Information on this page may not reflect the most up-to-date legal or other information. Readers of FAQs should contact their attorney to obtain advice with respect to any particular set of facts or circumstances. No reader, user or browser of this page should act or refrain from acting on the basis of information on this page without first seeking legal advice from counsel.
