– No high‑cost home loan may contain a provision which … open-end loan. No credit may be taken under the act for the payments made for such benefits. The borrower has to attend a funeral out of town C. The borrower has non-refundable tickets for a trip during the waiting period. Ann. Unless you pay off the debt in full each month, you will often have to pay a high-rate of interest or other kinds of finance charges for the use of credit. A credit card is an example of an open-end consumer loan. The following words and terms, when used in this chapter have the following meanings, unless the context clearly indicates otherwise: Association—A savings association subject to the Code. The account is not considered past due as long as you make payments according to the terms to which you agreed. §16-207[b]). Similarly, assume a transaction in which the person extending open-end credit is a financial institution under § 1003.2(g) but is not a creditor under Regulation Z, § 1026.2(a)(17). By request, you may obtain a free copy from each of the three national credit bureaus (Equifax, Experian and TransUnion) every year. With an open-end loan, you're approved for a specific amount. The FCRA lays out the following basic consumer rights: If a credit report is used against you – such as to deny credit, insurance or employment – you have a right to know about it. The best answer is A. In addition, if real estate prices appreciate, there can be capital gains. §1638. It has to be a true mortgage broker company B. The property secured by the loan will be offered up for sheriff's sale during the waiting period. Transactions other than under an open end credit plan (a) Required disclosures by creditor. The finance charge (interest) is the price you pay for being granted credit. What Is the Purpose of the Fair Credit Billing Act? Dumping old files in the trash bin behind the building . Sometimes the value on the Certificate of Reasonable Value is less than the purchase price. The change in the nature of these In this kind of credit the lender extends credit for use by the consumer, with an outside limit that depends on the debtor’s credit history and ability to handle the debt repayment. number of various types of accounts (credit cards, loans, mortgages, etc.) (e) A participation without recourse is considered to be an extension of credit by the participating bank, not by the originating bank. Definition is for open-end credit. §§16a-1-301[17] & 16a-3-308a) In addition, any mortgage may be subject to the UCCC by contract (see Kan. Stat. Credit cards and lines-of-credit are examples of open-end accounts. Bloom's: Comprehension Difficulty: Medium Learning Objective: 4 Topic: Cost of credit 43. For all open-end credit, a consumer's payment must be credited on the date of receipt as long as it is received before 5 p.m. Debt Consolidation Loans. With a debt . You typically use credit cards to make purchases. c. Reverse mortgage transactions. Credit cards and open-end lines of credit are examples. For each consumer credit transaction other than under an open end credit plan, the creditor shall disclose each of the following items, to the extent applicable: (1) … rated based on the number of recently opened accounts and the number of recent credit inquiries (10%) Types of credit used. In actuality, a credit card is simply a loan from a lending institution (the issuing company) that pays the merchant when it receives a loan document (a credit card receipt) from the merchant. This is called your credit limit. In this example, the transaction is an open-end line of credit under Regulation C, provided the other requirements of § 1003.2(o) are met. Which of the following would be considered an acceptable reason to waive the waiting period. Construction - The best interest of the consumer shall be considered in the interpretation and implementation of the provisions of this Act, including its implementing rules and regulations. FALSE. the creditor must ask all credit applicants for a statement of marital status. Using a credit card issued by a store, a bank card such as VISA or MasterCard, or overdraft protection are examples of open-end credit. Which of the following actions is not allowed? For example, payment for workmen's compensation insurance under either a compulsory or elective State statute are not considered payments for fringe benefits under the Act. A loan or line of credit is considered temporary financing and excluded under § 1003.3(c)(3) if the loan or line of credit is designed to be replaced by separate permanent financing extended by any financial institution to the same borrower at a later time. 2. Does it appear the following are accurately disclosed: a. The law applies to “open end credit accounts.” These include credit cards and revolving charge accounts. There is a maximum amount of credit that you can use, called your line of credit. For the purposes of computing delinquency, a payment of 90% or more of the contractual payment will be considered as a full payment. open-end credit evolved. While each situation must be separately considered on its own merits, payments made for travel, subsistence or to industry promotion funds … Open-end credit transactions; b. Purchase-money loans incurred to acquire or construct a consumer’s principal residence; or . Regardless of the purpose for which a credit card is to be used, including business, commercial, or agricultural use, no credit card shall be issued to any person except: (1) In response to an oral or written request or application for the card; or (2) As a renewal of, or substitute for, an accepted credit card. Covered loan means a consumer credit transaction secured by property located within this state that is considered a mortgage under section 152 of the federal "Home Ownership and Equity Protection Act of 1994", 15 U.S.C. Consumer credit classified as a loss—Closed-end consumer credit delinquent 120 days or more—5 monthly payments or more—and open-end consumer credit delinquent 180 days or more—seven zero-billing cycles or more. alimony received and child support payments are not considered sources of income. (b) Limitations. The finance charge pays the business in part, for its expense in keeping track of your account and its balance. In 1980, open-end credit generally consisted of credit card accounts with small credit lines that limited the exposure an institution had to an individual borrower. consolidation loan, you exchange several smaller debts with varying due dates and interest rates for a single large loan with one interest rate and one monthly payment. C. Tax deductions and tax credits D. Speculation and aggressive gains . The final rule now expressly excludes loans or lines of credit to be used primarily for agricultural purposes. (d) For purposes of Sec. Ag exception. (see Kan. U.C.C. 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