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.
A North Dakota Retail Installment Contract and Security Agreement refer to a legally binding document that governs the financing agreement between a consumer and a retailer in the state of North Dakota. This agreement outlines the terms and conditions under which the consumer purchases goods or services from the retailer and establishes the payment plan and security measures in case of default. In North Dakota, there are various types of Retail Installment Contracts and Security Agreements designed to suit different needs and transactions. Some common types include: 1. Purchase Money Security Agreement: This type of agreement is often used when a consumer purchases an expensive item, such as a vehicle or major appliance, on credit. The retailer retains a security interest in the purchased item until the consumer pays off the loan, serving as a collateral. 2. Installment Contracts for Consumer Goods: Retailers offering consumer goods, such as electronics, furniture, or home appliances, often use this type of agreement. It establishes the terms for the consumer to make periodic payments to the retailer until the full purchase price, including interest, is paid. 3. Retail Installment Contracts for Services: This specific agreement applies when a consumer avails services such as home renovations, repairs, or professional services from a retailer. The terms outline the payment schedule and conditions for the service provider to recover payment in case of non-payment or default. 4. Open-End Credit Agreement: This type of agreement establishes an ongoing credit relationship between a consumer and a retailer. It allows the consumer to make multiple purchases over time, up to a predefined credit limit. The agreement specifies the interest rates, payment terms, and any penalties for delayed or missed payments. The North Dakota Retail Installment Contract and Security Agreement usually cover crucial aspects such as the total amount financed, the prepayment rights, interest rates, fees, payment schedules, default conditions, and the consequences of default or repossession. Consumers and retailers are encouraged to carefully review and understand the terms of such agreements before signing to ensure compliance with North Dakota state laws and protect their rights and interests.
