Why Is There So Much Information In The Customer Agreement For An Installment Loan?
The Agreement you read and sign prior to receiving your installment loans proceeds is a contract between you and Check ‘n Go. The contract complies with all applicable state and federal disclosure requirements. It fully outlines the terms of the installment loan transaction, including the cost expressed both as a dollar amount and as an Annual Percentage Rate (APR). The installment loan customer agreement is a comprehensive document that fully outlines all terms, conditions, and applicable laws of an installment loan transaction. This document is designed to provide the borrower with detailed descriptions of everything expected of both the installment loan provider and the borrower. This document also explains all state and federal laws that apply to the loan.
The installment loan customer agreement will contain the following:
- State and Federal Disclosures
Depending on where the installment loan provider is located, state laws will vary. Some states have specific laws pertaining to the amount borrowed, which can range from a flat amount to a percentage. There are also laws in place that define the minimum and maximum borrowing period for an installment loan.
Regardless of the state of the installment loan provider, federal laws will apply everywhere and are outlined so the borrower can take them into consideration.
- Rates and Terms
Every installment loan provider has its own applicable charges that will affect the transaction. These are outlined in the installment loan customer agreement, including service fees and fees that will apply should the repayment become past due. The service fee is the flat amount added to the loan amount. This fee will be expressed in a dollar amount, as well an Annual Percentage Rate (APR) in accordance with federal law.