In a retail installment sale to a consumer as defined by Regulation Z of the Federal Trade Commission (FTC), the creditor must make the disclosures required by Regulation Z clearly and conspicuously in writing, in a form that the consumer may keep. The disclosures must be grouped, must be segregated from everything else, and must not contain any information not directly related to the disclosures required by Regulation Z (although the disclosures may include an acknowledgment of receipt, the date of the transaction, and the consumer's name, address, and account number). 12 C.F.R. § 226.17(a)(1). Regulation Z sets forth several closed-end model forms and clauses which illustrate other formats for these disclosures. 12 C.F.R. Part 226, Appendix H.
A federal notice regarding preservation of the consumer's claims and defenses is
required on all consumer credit contracts by Federal Trade Commission regulation. 16
C.F.R. § 433.2. The notice must appear in at least 10- point, bold face, type or print and
must be worded as shown if the form.
Arkansas Retail Installment Contract and Security Agreement serves as a legally binding document between a seller and a buyer for the purchase and sale of goods or services on a deferred payment basis. It outlines the terms and conditions under which the buyer agrees to make installment payments to the seller over a specified period of time, while the seller grants the buyer ownership rights upon completion of the full payment. This arrangement is commonly used for high-value purchases, such as automobiles, household appliances, or electronics. The Arkansas Retail Installment Contract and Security Agreement includes several essential elements. Firstly, it identifies the parties involved, highlighting their contact details and relevant identification information. Secondly, it outlines a detailed description of the goods or services being sold, including their quantity, quality, and any applicable warranties. Furthermore, this agreement specifies the total purchase price and the amount of each installment payment, along with the due dates for these payments. Additionally, it may include provisions regarding interest rates, late payment fees, and any applicable finance charges. Clear guidelines on how the payments should be made, such as by check, money order, or electronic transfer, are also included. A crucial aspect of the Arkansas Retail Installment Contract and Security Agreement is the security interest clause. This clause ensures that the seller retains a security interest or lien on the purchased goods until all payments are made in full. In case of default or non-payment, this security interest allows the seller to repossess the goods without the need for judicial intervention. It is important to note that there are different types of Arkansas Retail Installment Contract and Security Agreements based on the nature of the purchase. For instance, there are agreements specifically tailored for automobiles, known as Arkansas Auto Retail Installment Contracts and Security Agreements. Similarly, there may be agreements designed for the purchase of furniture, electronics, or other consumer goods, highlighting the specific characteristics and requirements for each type of transaction. In conclusion, the Arkansas Retail Installment Contract and Security Agreement is a comprehensive document that protects the interests of both the buyer and seller in a deferred payment transaction. Its specific terms and conditions, varied types, and inclusion of a security interest provision make it an essential tool for facilitating the sale of goods or services in Arkansas while ensuring legal compliance.
