One. the identity of the creditor; b. The total amount of funding is indicated using this term. In addition, a brief description of the amount financed must be provided, e.B. “The amount financed is `the amount of the loan granted to you or on your behalf.`” 12 F.R.C. § 226.18(b). (Note that the amount funded must be indicated in aggregate form in the separate information, BUT a breakdown must also be provided separately.); c. a list of the amount financed or a declaration of the consumer`s right to receive, upon written request, a written list of the amount financed; d. Financing costs are indicated using this term.
A brief description of the financing costs must be provided, by .B. “The financing fee is the dollar amount that the loan will cost you.” 12 C.F.R. § 226.18(d). Financing costs must be expressed in a total dollar amount and cannot be broken down; e. The APR uses this term and uses the actuarial method, the U.S. rule or the Federal Reserve Board`s table of annual interest rates to calculate the APR. 15 U.S.C. §§1606(a)(1)(A) & (B) and -1606(d). A brief description of the APRC must be provided, by .B. “the cost of your loan as an annual interest rate”. 12 C.F.R.
§ 226.18(s); If the APRC may increase at a later date (because it is a variable interest rate), certain additional information must be disclosed: (i) If the transaction is not guaranteed by the consumer`s principal residence or if the transaction is secured by the consumer`s principal residence for a period of one year or less, the creditor must indicate: • the circumstances in which the rate may increase; • Any restrictions on the increase; • The effect of an increase; and • An example of the terms of payment that would result from an increase. (ii) where the transaction is secured by the consumer`s principal residence for a period of more than one year, the creditor shall indicate: • the fact that the transaction involves a variable interest rate; and • A statement that information on variable interest rates was provided earlier. f. the number, amount and due date or period of payments to reimburse the full amount of payments; g. The sum of payments resulting from the sum of the amount financed and the financing costs. A brief description of the sum of the payments must be provided, for example .B. “The amount you paid when you made all the planned payments.” 12 C.F.R. § 226.18(h); h. Where the credit obligation has a demand characteristic, this fact shall be indicated; i. In the case of the sale of goods or services of which the seller is the creditor, the “total selling price”, using that term. The total selling price is the sum of the cash price of the property or services, additional fees not included in the financing costs and financing costs.
A brief description of the total sale price should be included, e.B. “the total price of your purchase on credit, including your deposit of __________ 12 F.R.C. § 226.18(j); j. A statement as to whether the consumer is entitled to a discount on a financing fee or is subject to penalties for full refinancing or advance payment; k. The amount of late fees; (l) If the loan is secured, a statement that the creditor has a security right in the asset acquired in the course of the credit transaction or in other identified asset; m. The conditions necessary to exclude from the financing commission voluntary credit insurance premiums and the costs and fees paid for the coverage of debt repayment. 12 F.R.C. § 226.4 (d); n. Where applicable, a detailed statement that certain security interest charges are not included in the financing costs (e.B. Taxes necessary for the collection of security instruments, as well as statutory taxes and charges actually paid to officials or paid to establish or perfect, release or satisfy the existence or perfection of a security right). 12 C.F.R. § 226.4(e); o.
In the context of a residential mortgage transaction, a statement is made as to whether or not a subsequent purchaser of the dwelling can assume a consumer`s remaining obligation under his or her original terms; p. A statement that the consumer should refer to the relevant contractual document in order to obtain information on non-payment, default, right to advance payment, as well as discounts and penalties for prepayment; q. Where the creditor requires consumers to deposit as a condition of the credit transaction, a statement that the amount of the APRC does not reflect the impact of the required deposit; 4. Consolidated instalment contracts Sometimes a retail buyer makes subsequent purchases from the seller from whom it purchased goods under a retail instalment payment agreement. At the seller`s option, these subsequent purchases can be included and consolidated with the previous retail instalment payment contract. Under the Retail Sales Act, subsequent purchases are treated as separate instalment contracts, even though they may have been consolidated in the previous contract. §56-1-2(M). If subsequent purchases are consolidated in the previous instalment payment contract, the buyer does not need to conclude a new contract for each subsequent purchase. Rather, it is sufficient for the seller to draw up a written note containing the information on the points listed above for the requirements of a instalment payment contract in the retail trade. §56-1-2(M)(2). The Retail Sales Act and the Truth in Loans Act require creditors to provide certain information when offering consumers a retail instalment contract. While the wording of the requirements varies, much of the same information is required by each statute.
A creditor who complies with the Truth in Loans Act and its regulations is considered to be in compliance with the Retail Sales Act. NMSA § 56-1-15. Imagine Friendly Finance Company has two different customers, each of whom financed the purchase of a new motor vehicle. Customer A received a simple loan at interest and used the product to purchase the vehicle. The loan bears interest at 8.99% per annum and there are no other financing costs, so the APR is also 8.99%. Customer B finances the purchase under an instalment purchase contract with financing costs (in the form of the price difference over time) with an APR of 8.99%. A loan is a transaction between you and a bank or other lender for money where you use the money to buy a vehicle and agree to repay the balance of the loan plus interest. An installment retail, on the other hand, is a transaction between you and the dealer to purchase a vehicle, where you agree to pay the dealer over time and pay both the value of the vehicle and interest. A merchant could sell the retail instalment purchase agreement to a lender or other party. 2.
Retail Instalment Contract Requirements under the Federal Truth in Loans Act For any retail instalment payment agreement, the creditor must disclose the following information in writing: 3. A buyer may pay the full balance in advance Any buyer may repay in full the outstanding balance of the instalment payment agreement in full at any time before its final due date, even if the retail instalment payment agreement provides otherwise. . . .