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 Washington Retail Installment Contract or Agreement refers to a legally binding document that establishes the terms and conditions of a purchase agreement between a consumer and a seller. This type of contract is commonly used in retail transactions where the buyer agrees to pay for the purchased goods or services in regular installment payments over a period of time. The Washington Retail Installment Contract or Agreement typically contains important information such as the names and contact details of both parties involved, a description of the goods or services being sold, the total purchase price, the amount of the down payment (if any), the interest rate (if applicable), and the number and frequency of installments. This agreement also outlines the rights and obligations of both the buyer and the seller. For instance, it may specify the consequences for late or missed payments, the procedures for resolving disputes, and any warranties or guarantees provided by the seller. The contract may also include provisions regarding the transfer of ownership, the right to cancel the agreement, and the penalties for early repayment. In the state of Washington, there are several types of Retail Installment Contracts or Agreements that are recognized and regulated by the Washington State Department of Financial Institutions. These include: 1. Installment Sales Contracts: These contracts are commonly used in retail transactions, where the buyer agrees to make regular payments to the seller over a predetermined period until the full purchase price is paid off. 2. Financing Contracts: Also known as retail installment sales contracts, these agreements are used when the seller arranges financing for the buyer through a third-party lender. The buyer agrees to repay the lender in installments rather than paying the full purchase price upfront. 3. Lease-Purchase Agreements: In this type of agreement, the buyer initially leases the goods from the seller and has the option to purchase them at the end of the lease term. The monthly lease payments often contribute towards the purchase price. It is important for both the buyer and the seller to carefully read and understand the terms of a Washington Retail Installment Contract or Agreement before signing it. If any disputes or issues arise, it is advisable to seek legal advice to ensure compliance with Washington laws and regulations.
