Laws

FEDERAL LAWS
Know the laws that will affect dealership financing and leasing.

TRUTH IN LENDING ACT- Requires that before you sign the agreement, creditors give you written disclosure of important terms of the credit agreement such as the APR, total finance charges, monthly payment amount, payment due dates, total amount being financed, length of the credit agreement and any charges for late payment.

FEDERAL CONSUMER LEASING ACT (FCLA) - Requires the leasing company (dealership, for example) to disclose certain information before a lease is signed, including:  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 lesser 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 PRACTICE LAWS – Requires creditors to provide a written notice to potential co-signers about their liability if the other person fails to pay; prohibits late charges in some situations and prohibits creditors from using certain contract provisions that the government has found to be unfair to consumers.

EQUAL CREDIT OPPORTUNITY ACT – Prohibits discrimination related to credit because of your race, gender, 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 on federal credit regulations and consumer rights, contact:

Federal Trade Commission
Washington, DC  20580
Phone: (877) FTC-HELP (382-4357)
Web site: http://www.ftc.gov/

Federal Reserve System
Washington, DC  20551
Phone: (202) 452-3693
Web site: http://www.federalreserve.gov/

STATE LAWS
Some state laws may provide you with additional rights.  For information on these laws, contact your state’s consumer protection agency or Attorney General’s office (Web site:  http://www.naag.org/ )