Benchmark Institute is a training and performance development
organization dedicated to increasing the quality and quantity of
legal services to low-income communities.
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Retail Installment Sales Acts
[Retail
Installment Sales Act (Unruh Act), Civil Code §§ 1801 et seq.; Automobile
Sales Finance Act (Rees-Levering Motor Vehicle Sales and Finance Act),
Civil Code §§2981 - 2984.4] |
 Consumer protection is the aim of the various state retail installment
sales acts. They require disclosures and establish the maximum and minimum
charges and rates that consumers may contract to pay for purchasing goods
and sometimes services on credit. They also cover delinquency charges and
may provide for the licensing of certain types of creditors. They also may
require certain provisions to be included in every contract and bar other
provisions. Some acts also specifically cover work, labor and services
furnished in connection with the improvement of real property. Many
provide that in the event of default of a balloon payment, buyers are
entitled to an absolute right to have a new payment schedule.
In the majority of states, most retail installment sales laws require
disclosure of all or many of these items:
• Names and addresses of buyer and seller
• Description of the goods and services
• Cash sale price
• Down payment
• Unpaid cash sale price
• Insurance costs and coverage, if any
• Official fees
• Unpaid balance
• Finance charge
• Time balance including the number of installments, amount of each and
the due date
• Time sale price
Most frequently these laws require that certain information must be in a
conspicuous type style. This information includes: information on the
contract amount, notices to the buyers of their rights to a completely
filled in contract and copy of same and the acknowledgment of receiving a
copy of the contract.
Most acts forbid waivers of its provisions by buyers specifically waiving
any buyer claims or defenses against sellers and any rights of action for
any illegal acts committed in the collection of payments under the
contract.
Rescission
Many sales laws provide that until the contract is delivered, buyers are
entitled to rescind the sale and be refunded any payments under it. Buyers
are required to return any goods delivered to them pursuant to the
contract. In some states cancellation is limited to the period before the
goods are delivered or service rendered.
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About Consumer
Law
Governing Laws
Unfair and Deceptive Acts & Practices
Truth In Lending
Retail Installment Sales Acts
Home Solicitation Contracts
Debt Collection
Garnishment |
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