The agreement for payment plans that is not subject to TILA (Truth in Lending Act) and does not require a signed Truth in Lending Statement is: Credit card or loan specifically for healthcare treatment.Here's why:1. Specific agreement for less than four installments and finance charge: This type of agreement falls under TILA regulations because it involves a finance charge, making it subject to TILA requirements.2. Specific agreement with more than four installments and finance charge: Similarly, this agreement, due to the presence of a finance charge, is subject to TILA regulations and requires a Truth in Lending Statement.3. No specific agreement with more than four installments and no finance charge: Although there is no finance charge involved, the agreement with more than four installments still triggers TILA requirements. Hence, it necessitates a signed Truth in Lending Statement.4. Credit card or loan specifically for healthcare treatment: This type of agreement is exempt from TILA regulations for healthcare-related credit arrangements, meaning it does not require a signed Truth in Lending Statement under TILA guidelines.Therefore, out of the options provided, the credit card or loan specifically for healthcare treatment is the agreement that is not subject to TILA and does not require a signed Truth in Lending Statement.
FAQs
Which of the following agreements for payment plans is not subject to TILA and does not require a signed - brainly.com? ›
The agreement that is not subject to TILA and does not require a signed Truth in Lending Statement is No specific agreement with more than four installments and no
Final answer: Finance charges under TILA include costs such as interest, loan fees, and points. Seller points and separate, genuine credit report fees are not included in the finance charge.
What types of loans are not covered by the Truth in Lending Act? ›What Is Not Covered Under TILA? THE TILA DOES NOT COVER: Ì Student loans Ì Loans over $25,000 made for purposes other than housing Ì Business loans (The TILA only protects consumer loans and credit.) Purchasing a home, vehicle or other assets with credit and loans can greatly impact your financial security.
What are the four main disclosures required under TILA? ›- Annual percentage rate.
- Finance charges.
- Payment schedule.
- Total amount to be financed.
- Total amount made in payments over the life of the loan.
TILA's provisions cover open and closed-end credit. Open-end credit includes home equity lines of credit (HELOCs), credit cards, reverse mortgages and bank-issued cards. Closed-end credit includes home equity loans, mortgage loans and car loans.
What is exempt from TILA? ›The following loans aren't subject to Regulation Z laws: Federal student loans. Credit for business, commercial, agricultural or organizational use. Loans that are above a threshold amount.
Which of the following loan types is not covered by TILA quizlet? ›The Truth in Lending Act (TILA) covers real estate loans, loans for personal, family, or household purposes, and consumer loans for $25,000 or less — as long as each of these loans are to be repaid in more than four installments or if a finance charge is made. Business loans are NOT covered by TILA.
Which of these does TILA not do? ›In summary, while mortgage loans and auto loans are examples of loans to individuals that fall under the Truth in Lending Act (TILA) under Regulation Z, credit card loans and business loans are not typically covered by TILA for individual consumers.
Which of the following is not included against loans? ›The lender's land is not included in terms of credit against loans. The Reserve Bank of India supervises formal sources. Bank gives loans to people by keeping some of their assets with them as a guarantee so that they can sell them in case the person fails to repay the loan and is called collateral.
Which loans are not covered under HMDA quizlet? ›1. Which type of loan transaction is NOT covered under the HMDA reporting requirements? Neither unsecured home improvement loans nor loans on unimproved land are covered transactions.
Which of the following loan transactions would be exempt from TILA disclosure requirements? ›
The Truth in Lending Act (and Regulation Z) explains which transactions are exempt from the disclosure requirements, including: loans primarily for business, commercial, agricultural, or organizational purposes. federal student loans.
What loans are subject to TILA-RESPA? ›The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property, but does not apply to: HELOCs; • Reverse mortgages; or • Chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).
Who must comply with TILA? ›The regulations found in the TILA apply to most kinds of consumer credit, from mortgages to credit cards. Lenders are required to clearly disclose information and certain details about their financial products and services to consumers by law.
What does TILA prohibit? ›Though TILA does not regulate interest rates, it does prohibit lenders from imposing excessive penalties if a borrower is late making a payment. These loans are covered under TILA: Credit cards. Mortgages.
What is a TILA violation? ›This law requires a creditor to disclose certain information in writing regarding the terms of a credit transaction. The two main types of TILA violations that can provide relief to borrowers when a creditor doesn't adhere to the law are violations for damages and violations that allow rescission.
What does TILA contain special rules for? ›It contains rules on disclosures, treatment of credit balances, annual percentage rate calculations, right of rescission, non requirements, and advertising.
What is not included in finance charges? ›IDENTIFYING FINANCE CHARGES
It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparable cash transaction.”
If the creditor reduces the interest rate it pays or stops paying interest on the consumer's deposit account or any portion of it for the term of a credit transaction (including, for example, an overdraft on a checking account or a loan secured by a certificate of deposit), the interest lost is a finance charge.
Which of the following would not be included in the finance charge? ›Final answer: The finance charge for credit includes additional costs like interest, fees, and insurance premiums associated with borrowing, but it does not include the principal amount borrowed.
Which transaction is not covered under the TILA-RESPA rule? ›The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property, but does not apply to: HELOCs; • Reverse mortgages; or • Chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).