New Jersey Lemon Law Lawyer Blog
The following is part of TILA or Truth In Lending and addresses cash against credit transactions:
TILA (15 U.S.C. § 1601 et seq., and Regulation Z, 12 C.F.R. § 1026.18(d), (e)): The failure to disclose the warranty and the cost of the GPS device as finance charges was a violation of regulation Z (12 C.F.R. § 1026.1), which implements TILA. “Regulation Z requires that the creditor provide consumers of closed-end credit, such as retail installment sales contracts, with clear and conspicuous written credit disclosures, 12 C.F.R. § 1026.17, including the finance charge and the APR. 12 C.F.R. § 1026.18(d), (e).” The finance charge is defined by Regulations Z as “any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparable cash transaction.” Since only the credit consumers were subjected to these charges they amounted to finance charges under Regulation Z, and thus violated TILA.