We recommend that a supervisory authority or court examine the content of a transaction and probably ignore the label we used. Sometimes a court looks at the etiquette and can use it against us, as happened in 2010 in a case at Staten Island, New York City Court. The case shows the difference between « interest » in a credit transaction and « time-price difference » or « credit service charge » in a tempering retail contract. There are not enough people who recognize this distinction. A tempe purchase agreement for the retail trade is slightly different from a credit. Both options are ways for you to get a vehicle by agreeing to make payments over time. In both cases, you are usually bound by the agreement after signing. With a tempe purchase agreement for retail, you may have additional rights under the law of your country (for example.B the ability to settle payments to the dealer in the event of a breakdown of your vehicle. In concluding that the transaction was a loan, the judge took into account the immediate assignment of the contract to Ford as well as the pre-printed assignment. However, the judge also indicated that the creditor used the word « interest » to support his position that the transaction was a loan subject to the New York usury ceiling and not a retail sale, which is not the case.
The simple use of the word « interest » in the contract gave the judge more ammunition to target the creditor for an illegal loan rather than acquiring a legal tempered purchase agreement for retail. 1. Conditions for instalment payment contracts under the Law on Instalment Purchase A instalment payment contract must be signed by the buyer in writing, dated, signed by the buyer and fulfilled according to certain essential provisions, including: In response to customer demand, retailers offer new payment options for their products, that go beyond simple cash and card transactions. One of these options, which is becoming increasingly popular, is an agreement that allows customers to divide their purchases into several small – often four – payments. These programs are aimed at retailers as they can offer their customers more flexible payment options while receiving full payment in advance….