Under the Truth In Lending Act, when do motor vehicle dealers have to comply?

The Truth In Lending Act (TILA) requires motor vehicle dealers to comply when they have an agreement for more than four installments. This regulation is in place to ensure that consumers are adequately informed about the terms and costs associated with financing, which includes disclosing the annual percentage rate (APR), the total cost of the loan, and the total amount financed. By focusing on agreements beyond four installments, TILA aims to protect consumers by ensuring that they receive clear and concise information about their rights and responsibilities when entering into longer-term financing agreements.

The other options do not align with the conditions set forth by TILA. For instance, a debt threshold of $100,000 is not a relevant criterion for this act, nor is compliance exclusively required for new vehicles or when financing is through a bank. TILA applies broadly across varying situations, focusing primarily on the structure of installment agreements rather than the specific nature of the vehicle or lender involved.