When must full disclosure of credit terms be made?

Full disclosure of credit terms must be made before a sale is consummated because this practice ensures that the potential buyer is fully informed about the financial implications of the credit agreement before they commit to the purchase. By presenting all relevant information regarding interest rates, repayment terms, and any associated fees prior to the finalization of the sale, consumers can make informed decisions and avoid potential pitfalls associated with unclear financing options. This requirement is rooted in the principles of fair lending and consumer protection, aiming to facilitate transparency and empower consumers in their purchasing decisions.

Making disclosure at this stage helps maintain trust and fosters a responsible sales process, as customers have the opportunity to ask questions or seek clarification about the credit arrangements before they officially agree to the purchase.