If you`re a resident of Illinois and are planning on signing an installment sales contract, there are some important things you should know. As per the Illinois Attorney General, there are several disclosure requirements that must be met by the seller when entering into such a contract.
The first requirement is that the seller must disclose the total cost to the buyer, including the principal amount, interest, credit life insurance, and any other fees or charges associated with the contract. This information should be provided in a clear and concise manner, so the buyer can fully understand the financial obligations they are undertaking.
Another important requirement is the seller must disclose the annual percentage rate (APR) associated with the contract. An APR is a measure of the cost of credit, expressed as a yearly rate. It includes both interest and any other fees or charges related to the loan. The APR helps consumers compare loan offers and understand the total cost of the loan over its entire life.
The third disclosure requirement is that the seller must provide the buyer with a notice of their right to cancel the contract. Illinois law allows buyers to cancel an installment sales contract within three business days of signing it. This cooling-off period gives consumers the opportunity to reconsider their decision and cancel the contract if they wish.
Lastly, the seller must provide the buyer with a written copy of the contract. This copy should include all the terms and conditions agreed upon by both parties. The buyer should keep this copy for their records and refer to it whenever they have any questions or concerns about the contract.
In summary, if you`re planning on signing an installment sales contract in Illinois, make sure the seller provides you with all the necessary disclosures, such as the total cost of the contract, APR, notice of your right to cancel, and a written copy of the contract. These disclosures are designed to protect consumers and ensure they fully understand the financial obligations they are undertaking.