Definition: consumer credit transaction from 15 USC § 1679a(2) | LII (2024)

FAQs

Definition: consumer credit transaction from 15 USC § 1679a(2) | LII? ›

The term “consumer” means an individual. The term “consumer credit transaction” means any transaction in which credit is offered or extended to an individual for personal, family, or household purposes.

Consumer credit refers to the ability of a consumer to access a loan. The most common form of credit used by consumers is a credit card account issued by a financial institution.

Typical consumer credit transactions subject to TILA include store credit purchases, credit card agreements, installment loans, automobile financing plans, and some real property transactions secured by a consumer's principal dwelling place, such as mortgages, home equity or home improvements loans.

Definition: A consumer transaction is a type of agreement or exchange where one party purchases goods or services for personal, family, or household use. Examples: Buying groceries at the supermarket for your family. Purchasing a new phone for personal use. Hiring a cleaning service for your home.

Loans and credits are different finance mechanisms.

While a loan provides all the money requested in one go at the time it is issued, in the case of a credit, the bank provides the customer with an amount of money, which can be used as required, using the entire amount borrowed, part of it or none at all.

Consumer credit often referred to as consumer debt is the debt taken by an individual to buy goods and services. Consumer credit can be in the form of a credit card or any type of personal loan.

Credit means the right granted by a creditor to an applicant to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment.

The term "consumer credit transaction" means any transaction in which credit is offered or extended to an individual for personal, family, or household purposes.

Some common types of consumer credit are installment credit, non-installment credit, revolving credit, and open credit.

Credit Transactions: Credit transactions are those transactions in which payment is not made or received at the time of purchase or sale of goods.

What is a consumer transaction under the UCC? ›

(26) "Consumer transaction" means a transaction in which (i) an individual incurs an obligation primarily for personal, family, or household purposes, (ii) a security interest secures the obligation, and (iii) the collateral is held or acquired primarily for personal, family, or household purposes.

Example of Credit Transaction

Taking our previous example forward, when A sells a computer to B and B agrees to pay A at a future date, A is considered to be a creditor and B is the debtor. This is a classic credit transaction and it is the backbone of the accrual form of accounting.

These include activities such as entering into a regulated credit agreement as lender, credit broking, debt adjusting, debt counselling, debt collecting, debt administration, providing credit information services and providing credit references.

What are the Types of Credit? The three main types of credit are revolving credit, installment, and open credit.

Explanation: Service credit is not a kind of consumer credit. Consumer credit refers to the borrowing of money to purchase goods or services and is usually paid back in regular installments. Examples of consumer credit include installment credit, personal loans, and revolving credit.

The CCPA requires that the total cost of a loan or credit product be disclosed, including how interest is calculated and any fees involved. It also prohibits discrimination when considering a loan applicant and bans misleading advertising practices.

The Consumer Credit Act is an important law that covers most types of lending in the UK. It sets out rules on: How businesses can lend. How they collect money. What your rights are when you borrow.

The term “consumer” means an individual who obtains, through a transaction, products or services which are used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

Some common types of consumer credit are installment credit, non-installment credit, revolving credit, and open credit.

(b) The term "person" means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity. (c) The term "consumer" means an individual.