(g) the contract shall contain a breakdown of the insurances forming part of the amount financed in accordance with point (c)(3) and the insurance forming part of the financing costs; The breakdown indicates the type of insurance coverage and the premium charged to it, and if the insurance expires before the date of the last scheduled payment included in the repayment plan, the duration of the insurance is indicated. The Retail Instalmentment Sales Act, §§ 56-1-1 to -16, and the Federal Truth in Lending Act, 15 U.S.C§ §1601 et seq., both govern retail payment agreements and retail price agreements. In order to protect consumers, both laws require meaningful disclosure of credit terms to borrowers. Meaningful disclosure of credit terms is intended to enable the consumer to “compare different credit terms … and avoid misinformed use of credit. 15 U.S.C§ 1601(a). If your business like Friendly serves both loans and retail installment sales, you may be wondering: 1. An installment retail contract is created when a customer agrees to purchase goods through installment payments. Instalment retail contracts are closed transactions within the meaning of the Truth Lending Act. For example, a consumer enters into an installment retail contract when they purchase a device on an installment plan or a car with a loan that has a repayment plan that determines the number and amount of payments. §§ 56-1-1(H); 56-1-2. (e) If the deposit contains foreign exchange assets, the contract shall contain a brief description of that property. (6) The amount of an administrative financing fee called a “prepaid funding fee”.
§ 56-1-2. The instalment retail contract does not need to be defined in a single document. A retail installment purchase agreement is slightly different from a loan. Both are ways for you to get a vehicle by agreeing to make payments over time. In both cases, you are usually bound by the agreement after signing. 1. Requirements for Retail Instalment Payment Contracts under the Retail Installment Purchase Act A retail instalment purchase agreement must be in writing, dated, signed by the purchaser and entered into with respect to certain essential provisions, including: 2. “Property” includes all personal items, with the exception of motor vehicles, that are primarily used for personal, family or household purposes. The property includes mobile homes, but not if the retail rate contract also covers the property on which the mobile home is located. § 56-1-1(A). (f) 1. Where the contract contains a financing fee determined on the basis of the forecast, the contract shall specify the method of calculating the unearned portion of the financing costs in the case of a full advance payment of the buyer`s obligation and shall include a list of the amount or method of calculating a commission different from the amount of such unearned financing fee in the calculation of the amount; which is credited, can be deducted.
on the obligation or refunded to the buyer. The reference to the rule of 78, the sum of the figures, the sum of the periodic balance sheets or the actuarial method constitutes a sufficient identification of the method of calculating the undeserved part of the financing fee. (a) A contract may provide that the buyer shall pay a late payment fee for any instalment payment that does not exceed any of the following amounts: (3) Any contract for goods or services that provides for a security right in immovable property shall also include the following notice, written in the same language, e.B. Spanish: as used in the contract: “WARNING TO THE BUYER: IF YOU SIGN THIS CONTRACT, YOU WILL INSTALL YOUR HOME AS SECURITY. THIS MEANS THAT YOUR HOME CAN BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT LEGAL PROCESS IF YOU MISS A PAYMENT, AS REQUIRED BY THIS AGREEMENT. “This notice must be printed in bold type of at least 14 points, distinguished from the rest of the contract by a margin and appearing directly above the field reserved for the Buyer`s signature. A security right established in a contract described in this paragraph and not providing for the notice required by this paragraph is void and unenforceable. .