Closed-end transactions involve a fixed amount to be paid back over a period of time such as a note or a retail installment contract.
The Guam General Disclosures Required By The Federal Truth In Lending Act — Retail InstallmenContractac— - Closed End Disclosures are essential components for any retail installment contract within the jurisdiction of Guam. These disclosures ensure that consumers are fully informed about the terms and conditions of their credit agreements. By providing this information, the Federal Truth In Lending Act (TILL) promotes transparency and fairness in consumer lending. 1. Annual Percentage Rate (APR): The APR is a key disclosure that informs the consumer about the cost of borrowing. It includes not only the interest rate but also any additional fees or charges associated with the loan. The APR helps consumers compare different loan offers and choose the most favorable option. 2. Finance Charge: The finance charge is the cost of credit expressed in dollar amount. It includes the total amount of interest paid over the loan term as well as any additional fees or charges. This disclosure lets consumers understand the total cost of borrowing and make informed decisions. 3. Amount Financed: This disclosure indicates the actual amount of credit extended to the borrower. It excludes any upfront fees or charges that are financed separately. The amount financed helps consumers understand the funds they will receive and how much they will need to repay. 4. Total of Payments: This disclosure represents the total amount payable by the borrower over the life of the loan, including both principal and interest. It provides an overall view of the financial commitment and allows consumers to plan their budgets accordingly. 5. Payment Schedule: The payment schedule details the number of payments, payment frequency (e.g., monthly, bi-weekly), and the due dates. It helps borrowers anticipate their obligations and ensure timely payments. 6. Total Sale Price: If applicable, the total sale price includes the cash price of the goods or services purchased, as well as any associated finance charges or fees. This disclosure is particularly relevant for retail installment contracts involving the sale of goods or services alongside credit. 7. Prepayment Penalty: If a prepayment penalty is included in the contract, it must be disclosed to the consumer. This disclosure highlights any fees or charges associated with early repayment, enabling borrowers to consider the cost-effectiveness of repaying the loan ahead of schedule. These various Guam General Disclosures Required By The Federal Truth In Lending Act — Retail InstallmenContractac— - Closed End Disclosures provide consumers with important information about the terms and costs of their credit agreements. By ensuring transparency and fairness, these disclosures empower consumers to make informed financial decisions and protect their rights in the lending process.
