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 Wisconsin Retail Installment Contract or Agreement (RICH) is a legal binding document that outlines the terms and conditions under which a retail purchase can be made on an installment basis in the state of Wisconsin. It is commonly used in various retail sectors, such as car dealerships, electronics stores, furniture stores, and other businesses that offer financing options for their products or services. The RICH serves as a contract between the consumer (buyer) and the retailer (seller) and specifies the rights and obligations of both parties. It covers essential aspects like payment terms, interest rates, fees, and any additional charges associated with the installment plan. One type of Wisconsin Retail Installment Contract is the Motor Vehicle Retail Installment Contract. This type is specifically designed for purchasing vehicles, including cars, trucks, motorcycles, and boats. It includes specific clauses related to registration, insurance, warranties, and repossession in case of default. Another type is the General Retail Installment Contract, which covers a wide range of retail purchases outside motor vehicles. It is used for various consumer goods like furniture, appliances, electronics, and other high-value items. The terms and conditions within this type of contract may vary depending on the retailer and the nature of the purchase. Both types of Wisconsin Retail Installment Contracts are required to comply with the Wisconsin Consumer Act, which enforces regulations to protect consumers from unfair or deceptive practices. This act mandates that the contract must be in writing and clearly state the annual percentage rate (APR), finance charges, total cost of the purchase, and payment schedule. It also ensures that consumers have the right to pay off the contract early without any penalties. Wisconsin Retail Installment Contracts offer consumers the flexibility to purchase goods and services without having to make full payment upfront. By spreading out the purchase price over a specific duration, consumers can manage their finances more effectively. However, it is important for buyers to carefully review and understand the terms of the agreement before signing, as they will be legally bound to fulfill their financial obligations as outlined in the contract.
