shopping for your car
The Truth in Lending Act
The Truth in Lending Act safeguards consumers by requiring lenders to clearly list the sales contract terms of borrowing. This written document is known as the Truth in Lending Disclosure Statement. What must it include?
- The make and model of car, how many miles it's been driven, and the extras that are included.
- The amount being financed, payment amount, number of payments, annual percentage rate, finance charges, and any late or pre-payment penalty fees.
- If the car has been stolen or in an accident prior to sale.
"B" is correct. The Truth in Lending Act covers the terms of financing. Other laws may cover the condition in which the car is sold.