A business regularly extends credit to customers for large purchases with a
standard interest rate of 5 percent. There is also a $200 installment fee that is
added to the total cost of the purchase. The sales people are required to tell
customers about this fee before adding it to the bill, but it is not in writing. Does
this comply with the Truth in Lending Act?
(1 point)
No, adding any kind fee is deceptive and illegal.
Yes, consumers expect that there will be installment fees.
No, all details of the terms of credit must be documented in writing.
Yes, as long as the customer is informed of all fees, the business has done its
duty.