Federal
Laws
The laws that authorize and regulate vehicle dealership
financing and leasing are important and you should
know about them before buying
used or new car,
or even if you think of car
buying online.
Truth in Lending Act -before
you sign the agreement, creditors are required
to give written disclosure of important terms
of the credit agreement, such as APR, total finance
charges, monthly payment amount, payment due dates,
etc.
Federal Consumer Leasing
Act (FCLA) -the leasing company is required
by law to disclose certain information before
a lease is signed. This includes the total amount
of the initial payment; the number and amounts
of monthly payments; all fees charged, including
license fees and taxes; and the charges for default
or late payments. For an automobile lease, the
lessor must additionally disclose the annual mileage
allowance and charges for excessive mileage; whether
the lease can be terminated early; whether the
leased automobile can be purchased at the end
of the lease; the price to buy at the end of the
lease; and any extra payments that may be required
at the end of the lease.
Credit Practices Rule -
requires creditors to give written notice
to potential co-signers about their liability;
prohibits late charges in some situations; and
prohibits creditors from using certain contract
provisions which have been found to be unfair
to consumers by the government.
Equal Credit Opportunity
Act - prohibits discrimination related
to credit because of your gender, race, color,
marital status, religion, national origin or age.
It also prohibits discrimination related to credit
based on the fact that you are receiving public
assistance or that you have exercised your rights
under the federal Consumer Credit Protection Act.
For more information, contact:
