TRUTH IN LENDING

Question 1

In financing a vehicle on an installment sales contract, the APR stands for:

Answer 1

Annual percentage rate.

Question 2

Finance charges must be stated in:

Answer 2

Annual percentage rate.

Question 3

Full disclosure of credit terms must be made:

Answer 3

Before a sale is consummated.

Question 4

The following is required to be disclosed under Regulation Z (Truth in Lending) of the Consumer Credit
Protection Act:

Answer 4

Amount financed.
Late fees and APR.
Schedule of payments.

Question 5

If a financing company denies a loan application, it must:

Answer 5

Provide the applicant with a written statement explaining the reason of denial within 30 days.

Question 6

When can an inquiry be made of a credit-reporting bureau?

Answer 6

When the customer signs a credit application.

Question 7

Under the Truth in Lending Act, when financing an automobile, which of the following charges have to
be disclosed to the customer:

Answer 7

Annual percentage rate.

Question 8

When discussing a customer’s loan application, the following cannot be asked:

Answer 8

“Are you married?”