Legal Requirements to Translate Consumer Contracts

Depending upon where you live and work in the United States, the number of people you do business with who don’t speak English fluently or at all could be significant.  A 2013 article in the National Review reported that only 2 percent of West Virginians reported themselves as non-English speakers on the 2010 Census compared to 44 percent of Californians.  In those regions where the percentage of non-English speakers is higher, are there legal requirements to translate consumer contracts?

One of the requirements of a legal contract is that those involved in the contract are “capable parties.”  To be “capable,” one must know or comprehend what one is doing in obligating themselves to the agreement.  If a person cannot read the contract, one could make a legal argument that the person wasn’t a capable party.  Without two capable parties, it is challenging to have mutual assent.

Examples of Legal Requirements to Translate Consumer Contracts

California is one of the leaders in setting legal standards for non-English speakers.  In 2020, AB 3254 was passed to expand the legal requirements to translate consumer contracts.  Before this law, businesses were required to translate specific contracts into Spanish, Chinese, Tagalog, Vietnamese, or Korean.  AB 3254 took these requirements a step further and required a translated version to be provided to any person signing the contract, including guarantors and co-signers.

California’s laws specifically apply to the following types of consumer contracts:

• Automobile sales and leases
• Apartment leases and rental agreements
• Home mortgages
• Agreements for legal services
• Personal loans and extensions of credit

Illinois regulates translation requirements through the Illinois Consumer Fraud and Deceptive Business Practices Act.  Suppose a business negotiates a contract in a language other than English or acts as an interpreter to assist the non-English speaker during negotiation. In that case, the contract must have an addendum signed by the consumer attesting they have a complete understanding of the contract.

Texas has a high percentage of Spanish speakers within its state. Accordingly, they have a law requiring any loan contract, retail installment transaction, or home equity loan that is negotiated in Spanish to be accompanied by specific disclosures written in Spanish, including a summary of the contract terms.

Florida’s insurance codes regulate transactions conducted in a language other than English.  Under these laws, insurance companies, including HMOs, prepaid health clinics, and prepaid limited health service organizations, must provide consumers with written translations of their contracts.

Do you need help determining if you must translate a consumer contract and the requirements?

At The Perfect Translation, we have individuals who are fluent in foreign languages and experienced with consumer contract laws.  The Perfect Translation uses teams of language experts who have professional experience in the legal topics you’re dealing with–from patents to contracts, disclosures, and advertising materials.  Don’t leave your important translation work to computerized bots or generalized linguists.  Contact us today for a free quote and learn more about what makes The Perfect Translation the best place to get accurate legal translations.