A consumer buys furniture. The store gives the consumer $2,000 credit to be paid back over two years. The store fails to disclose the interest rate that it charges for credit. Under the Truth-in-Lending Act, the store is wrong for not listing the interest:

Question

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The Truth-in-Lending Act requires stores to disclose the interest rate charged for credit. Failing to do so can result in civil damages of up to $1,000 plus attorney fees for the consumer. The fact that the consumer agreed to the credit does not excuse the store from failing to disclose the interest rate. Canceling the contract may be an option for the consumer, but they also have the right to seek damages for the store's violation of the law. Option C (giving the goods for free) is not a plausible outcome for this situation. Option E (no violation) is incorrect because the store is required to disclose the interest rate.

A Consumer Buys Furniture