A retail installment agreement is an agreement signed by the Purchaser involving a finance charge and providing for the sale of goods or services. Federal and some State Laws (Consumer Credit Protection Acts) require the disclosure of what the Purchaser is being charged for the credit he/she is receiving. These disclosures include such things as the amount being financed; finance charges; the annual percentage rate; and the number of payments and when due. However, such disclosures are usually only required when a person regularly extends consumer credit (e.g. more than 25 times in the preceding calendar year).
This form is for a casual seller who does not enter into such transactions on a regular basis. It can also be used in commercial transactions (e.g., credit that is not being extended primarily for personal, family, or household purposes).
The Purchaser in this form grants the Seller a security interest in the collateral being sold. A security interest is an interest in personal property or fixtures that secures payment or performance of an obligation. The Seller requires the Purchaser to secure the obligation with the personal property being purchased so that if the Purchaser does not pay as promised, the Purchaser can take the collateral back, sell it, and apply the proceeds against the unpaid obligation of the Purchaser.
A Maryland Retail Installment Contract or Agreement refers to a legal document that outlines the terms and conditions of a purchase made on credit in the retail industry within the state of Maryland. This contract allows consumers to purchase goods or services while agreeing to pay for them in installments over a period of time rather than making a full upfront payment. The Maryland Retail Installment Contract or Agreement typically includes important details such as the names and contact information of both the buyer and seller, a detailed description of the goods or services being purchased, the total purchase price, the down payment amount (if any), and the installment amounts and dates. It also specifies any applicable interest rates, finance charges, and fees associated with the credit transaction. There are two primary types of Maryland Retail Installment Contracts or Agreements: 1. Closed-end contract: This type of agreement has a fixed term and a specified number of installment payments. The terms and conditions are predetermined, and the contract generally cannot be changed unless both parties agree to modify it. 2. Open-end contract: Unlike a closed-end contract, an open-end contract does not have a fixed term or a predetermined number of payments. Instead, it functions more like a credit card, allowing the buyer to make purchases on credit up to a specified credit limit. The buyer can make payments over time and may continue to use the credit line as long as they meet the terms of the agreement. Both types of Maryland Retail Installment Contracts or Agreements are regulated by the state's laws to protect consumers from unfair practices. These laws dictate the maximum interest rates that can be charged, disclose requirements, cancellation rights, and other consumer protection provisions. In summary, a Maryland Retail Installment Contract or Agreement is a legally binding document that allows consumers to purchase goods or services on credit and pay for them in installments. It is important for both buyers and sellers to fully understand the terms and conditions outlined in the agreement to ensure a fair and transparent credit transaction.
