Cedar Rapids Gazette, October 8, 1974, Page 9

Publication: Cedar Rapids Gazette October 8, 1974

Cedar Rapids Gazette (Newspaper) - October 8, 1974, Cedar Rapids, Iowa rn 0i    ■%    t, The Cedar Rapids Gazette: Ties., Ort. ii, 1174 nmm TI Not Knowing Interest Rate Like Buying Car Without Asking Price By Sylvia Perter NKW YORK — A study made a full 15 months after Truth in Lending became law of the land, back in the summer of 1988, revealed that only two out of three borrowers thought they knew what interest rate they were paying on their used car loans — and even more shocking, one in seven didn t know the rate of interest they were paying on their home mortgages. In another study by Lewis Mandell of the University of Michigan, only one in IO borrowers could estimate the rate of interest he or she was Second of five articles paying on a car loan with a IO percent margin of error. Nearly half missed the mark by at least 50 percent. This is akin to buying a car or a house without bothering to inquire about the price On this fifth anniversary of the historic law, this week's columns are designed to test your credit I.Q All these are questions you should be able to answer by now without any assistance. Q. What mast a lender tell yin Bader the law? A The list of items that must be spelled out both on the loan contract itself and in ads of loan terms is long and detailed But here s a sampling of information you must be given: The cash price; amount of down payment or trade-in allowance (balance of the purchase price minus down payment); total dollar amount and true annual percentage rate of finance charge, including not only interest but also fees for credit reports, appraisal costs and other extras; itemized list of all charges not included in the finance charge; number, amount, and due dates of payments; amount of time you have to pay before you become liable for a finance charge; amount of any late charges you may have to pay if you get behind in payments or are otherwise delinquent in Plans 500-Seat Jumbo Airliner SEATTLE (AP) - Boeing Co. officials say they are considering plans for an expanded version of the 747 jetliner which would carry 500 passengers. The standard jumbo jet has a passenger capacity of 350 George Bouvet, marketing manager for the 747, said also under consideration is a stretched version of the short-range jumbo jet which would carry 700, compared with the present 500-passenger 747-SR being flown by Japan Air Lines. Boeing is now constructing a short-body version of the 747 with 80 fewer seats than standard jumbo jets. Bouvet said a new aircraft program would not be pursued until the firm is assured of buyers. Wilson: Devotion to History Ended Nixon LONDON (AP) - Prime Minister Wilson says former President Nixon “destroyed himself by his devotion to the muse of history ." Wilson said in a broadcast interview with David Frost that Nixon wanted the White House tape's to ensure his place in history “He wanted to have everything recorded that he did, for the sake of history, for the historians." Wilson said. “It might not be published for IOO years and those tapes have ensured for him a place in history the very opposite of what he would have wished." LAFF - A - DAY cn IT \- r Til mJk BU ^ - I   f I could balance our budget if you'd like to lose about twenty pounds." His Bast Carpet Buys Ara At Carpatland U.SJL payments; whether the loan is secured by your property (e.g., title to your car or stocks and bonds). This security and the lender’s interest in it must he clearly described. Q. Dues the law also apply ta things yaa bay aa time tram fa rn Ila re stares and other retailers? A. It applies to all consumer credit transactions, whether you are borrowing cash directly, charging a purchase of a product or service, or financing a car. Among types of creditors covered are: Sales finance companies, consumer retailers, sbrvice credit companies, auto dealers, issuers of credit cards Q. Haw does the law affect charge accaantx? A. Say you are opening a revolving charge account with a department store The law specifies the conditions of the credit agreement that must be disclosed to you before you open the account and also lists information which must be included in your monthly statement — including date and amount of each purchase, credit for returns, other adjustments, amount of finance charge for the month and many more items. And it spells out how credit on charge accounts may be advertised. Q. What Information must you get on bank credit cards? A. You also are entitled to certain information when you open the account, the creditor must tell you, among other things: How he determines the amount of the finance charge; how long you can wait without having to pay a finance charge; the minimum periodic payment required. On the monthly statement, you must be told, among other things, your previous balance on the account; the amount of the items charged and payments made during the month; the amount of the finance charge of the month. Q. Daes the law als# caver other types af cards? A Yes. Your maximum liability in the case of unauthorized use of any credit card which has been stolen from you is $50 for each card This maximum holds even if you fail to discover the loss for a considerable period of time, and even if you fail to notify the issuer promptly. Once you notify the issuer by phone or letter that a card has been stolen, you have no further liability. Another provision is that all credit cards must bear your signa- SylviaPorter ture or photograph or similar means of identification. Next: Test Your Credit I Q — Part III The following is a 1st of exceptions to the parts covered by Chrysler Corporations new 12 month unlimitecl mileage warranty* 1. Tires We decided that the very first thing you should know about our new warranty is what isn’t covered. And we don’t mind telling you, because the list is very short. That warranty is just part of our Owner Care Program which is based on the idea that even if you’re selling the most appealing cars in the world, it never hurts to have a clincher. Well even put it in writing. For the first 12 months of use, any Chrysler Motors Corporation dealer will fix, without charge for parts or labor, any part of our 1975 passenger cars we supply (except tires) which proves defective in normal use, regardless of mileage. SJL The first asterisk that gives instead of taking away. There are some expensive things that could just “wear out’’ if you drive enough miles even though they’re not “defective.” Brake linings. Mufflers. Shock absorbers. So we put that asterisk up there to tell you that we’ll replace those parts if they wear out during the first 12 months of normal use. no matter how many miles you drive. Wa ask you to take care of the little items. Of course, we d like you to handle some of the things you’d just naturally expect to take care of. You know, normal maintenance like replacing wiper blades and filters when it’s needed (unless they’re defective in which case they fall under the warranty). And we won't leave you alone in the night. lf you make an appointment in advance for warranty work and it can’t be finished from morning until evening of the same working day, participating dealers will supply you with a loaner. Free of charge. Now, if an Owner Care Program like that sounds great to you, imagine what our cars are like. Find out about both. Ask your Dodge, or Chrysler-Plymouth dealer about his cars. Then, ask him about “The Clincher!” o O CHRYSLER Dodge Plymouth Oodqr J ruths Its going to take better care of the people who buy our cars. a CHRYSLER CORPORATION / ;

  • George Bouvet
  • Lewis Mandell
  • Sylvia Perter

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Publication: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

Issue Date: October 8, 1974

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