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Truth in Lending: 5.12.2.4 General Variable Rate Disclosure Rules

Disclosures in variable rate transactions must be given for the full term of the transaction and must be based on the terms in effect at the time of consummation.1226 However, in a seller buydown that is reflected in the credit contract or in a consumer buydown, the official interpretations give special rules for disclosing a composite annual percentage rate.1227

Truth in Lending: 10.4.1 Overview

The statute501 and Regulation Z502 clearly contemplate that the consumer has an extended right to rescind when required rescission information and forms or the enumerated “material” disclosures503 are not properly delivered.

Automobile Fraud: ALABAMA

State Odometer Statute: Ala. Code § 8-19-5(15) (UDAP)

Prohibited acts: Disconnect, turn back, replace, or reset the odometer of any vehicle to reduce mileage indicated with intent to deceive.

Private civil remedies: Greater of actual damages or $100, or treble the actual damages upon certain conditions; costs and attorney fees.

Automobile Fraud: ALASKA

State Odometer Statute: Alaska Stat. §§ 45.50.471(b)(18), 45.50.561

Prohibited acts: Disconnect, turn back or reset the odometer of a vehicle to reduce the mileage indicated.

Scope: Trade or commerce.

Persons protected: Any person who suffers loss of money or property.

Automobile Fraud: ARIZONA

State Odometer Statute: Ariz. Rev. Stat. Ann. § 44-1223

Prohibited acts: (1) Advertise for sale, sell, use or install any device which causes an odometer to inaccurately register mileage driven; (2) Operate a vehicle with a disconnected or nonfunctional odometer on a street or highway; (3) Replace, disconnect, turn back or reset an odometer with intent to reduce mileage indicated; (4) Sell or offer to sell a vehicle whose odometer does not register the true mileage driven, with intent to defraud.

Automobile Fraud: CONNECTICUT

State Odometer Statute: Conn. Gen. Stat. § 14-106b

Prohibited acts: (1) For any person or their agent to remove, turn back or change the reading on an odometer; (2) Sell, offer for sale, use, install or cause to be installed any device which causes an odometer to inaccurately register mileage driven.

Exclusions: Only remove or turn back odometer if repair or replace but each odometer repaired and each new or used odometer shall display mileage at least equal to mileage prior to repair.

Automobile Fraud: Introduction

This appendix summarizes state states and regulations relating to yo-yo sales, including those that require retail installment contracts to include all essential terms.

Automobile Fraud: ALASKA

Alaska Stat. § 45.25.610

Prohibited acts: Noncompliance with required procedures and notices.

Automobile Fraud: ARIZONA

Ariz. Rev. Stat. Ann. §§ 44-1371 (sales and leases), 44-286

Prohibited acts: When sale or lease conditioned on final approval of financing, the sale or lease of trade-in vehicle prohibited prior to final approval or prior to return to buyer (§ 44-1371). Sale contract to have no blank spaces (§ 44-286).

Required procedures: Until financing for sale or lease is approved or disapproved, seller must retain title to, and possession of, trade-in vehicle.

Automobile Fraud: CALIFORNIA

Cal. Civ. Code § 2982.5 (West)

Prohibited acts: Seller may not provide any security or other guaranty of payment on loan made to buyer, and may not receive any commission or other remuneration for assisting the buyer to obtain the loan.

Automobile Fraud: COLORADO

Colo. Rev. Stat. § 6-1-708 (sales and leases)

Prohibited acts: Deceptive business practice to: (1) guarantee, as defined, approval of sale or lease when sale contract or lease conditioned on credit approval; (2) sell or lease trade-in vehicle before transaction finalized; (3) fail to return any collateral or down payment tendered pending credit approval when financing not approved.

Automobile Fraud: CONNECTICUT

Conn. Gen. Stat. § 14-62(h)

Prohibited acts: No licensed dealer shall deliver or permit a retail purchaser to take possession or delivery of any used motor vehicle until such purchaser has paid in full for the vehicle or until financing offered by the dealer for such vehicle has been approved by the lending institution or other entity through which any financing agreement has been made.

Required procedures: None specified.

Required notices: None specified.

Enforcement: Violation is class B misdemeanor.

Automobile Fraud: DELAWARE

Del. Code Ann. tit. 5, § 2907(a), (c), (i)

Prohibited acts: Noncompliance with sale contract requirements.

Required procedures: Sale contract to have no blank spaces and contain essential financial details as specified. Some blank spaces as to vehicle identification and date of first installment may be left blank if vehicle not yet delivered to buyer. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.

Automobile Fraud: FLORIDA

Fla. Stat. § 520.07

Prohibited acts: Noncompliance with sale contract requirements.

Required procedures: Sale contract to have no blank spaces and contain essential financial details as specified. Some blank spaces as to vehicle identification and date of first installment may be left blank if vehicle not yet delivered to buyer. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.

Automobile Fraud: GEORGIA

Ga. Code Ann. § 10-1-32

Prohibited acts: Noncompliance with sale contract requirements.

Required procedures: Sale contract to have no blank spaces; however, no specific financial arrangements are included as required elements of contract. Some blank spaces as to vehicle identification and date of first installment may be left blank if vehicle not yet delivered to buyer. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.

Automobile Fraud: IDAHO

Idaho Admin. Code r. 04.02.01.237

Prohibited acts: If sale becomes null and void, dealer must return trade-in vehicle upon buyer’s return of the purchased vehicle; if trade-in vehicle is no longer available, dealer must pay consumer the trade-in allowance within one business day.

Required procedures: None specified.

Automobile Fraud: ILLINOIS

815 Ill. Comp. Stat. § 505/2C

Prohibited acts: Failure to return down payment, including trade-in, if furnishing of merchandise, whether under purchase order or contract of sale, is conditioned on consumer providing credit references or having a credit rating acceptable to seller and seller rejects the consumer’s credit application.

Required procedures: None specified.

Required notices: None specified.