Summary Contents Using the Digital Library . iii The Leading Resource for All Consumer Law. .iv Contents . ix Part I General Principles Chapter 1 Background. 1 Chapter 2 Statutes Restricting Credit Terms . 29 Chapter 3 Federal Preemption and the Applicable State Statute. 91 Chapter 4 Interest, Points, Fees, and Delinquency Charges . 177 Chapter 5 Credit Math: Calculating Interest and Rebates. 205 Chapter 6 Credit Insurance and Debt Protection Products . 291 Chapter 7 Litigation . 351 Part II Specific Types of Credit Chapter 8 Credit Cards: Abuses, Regulation, and State Law Claims . 449 Chapter 9 Payday Loans . 497 Chapter 10 Installment Loans . 561 Chapter 11 Motor Vehicle, Manufactured Home, and Other Installment Sales. 589 Chapter 12 Auto Title Loans . 639 Online with updates at www.nclc.org/library vii Consumer Credit Regulation Chapter 13 Rent- to- Own and Leases . 655 Chapter 14 “Sale” of Future Payment Streams . 677 Chapter 15 Tax- Time Financial Products: RALs, RACs, and Assignments . 695 Appendices Appendix A Federal Credit Regulations . 713 Appendix B State Lending Statutes . 815 Appendix C Summaries of State Retail Installment Sales Acts . 829 Appendix D Summaries of State Closed-End Installment Loan Statutes . 875 Appendix E Summaries of State Open-End Credit Statutes. 937 Appendix F Rate Exportation. 977 Appendix G Preemption Based on OCC Regulation of Federal Depositories . 985 Appendix H Preemption of Manufactured Home Loan Interest Rates . 991 Appendix I Federal Credit Unions. 997 Index . 1005 viii Online with updates at www.nclc.org/library Contents Using the Digital Library . iii The Leading Resource for All Consumer Law. .iv Part I General Principles Chapter 1 Background 1.1 About This Treatise . 1 1.1.1 All Subscribers Have Access to the Digital Version . 1 1.1.2 Topics Covered and Relation to Other NCLC Treatises . 1 1.1.3 Why This Treatise . 2 1.1.4 Treatise’s Organization and Appendices . 2 1.1.5 Pleadings, Primary Sources, and Practice Tools . 3 1.2 Consumer Credit Litigation Checklist. 3 1.2.1 Analyzing a Credit Transaction . 3 1.2.2 Payday Loans. 4 1.2.3 Installment Loans. 4 1.2.4 Auto Title Loans . 4 1.2.5 Credit Cards. 5 1.2.6 Motor Vehicle and Other Installment Sales . 5 1.2.7 Manufactured Home Loans . 5 1.2.8 Auto Leases . 5 1.2.9 Rent to Own and Leases . 5 1.2.10 Sale of Future Payment Streams . 5 1.2.11 Tax Time Financial Products . 5 1.2.12 Mortgage Loans. 5 1.2.13 Home Equity Loans . 5 1.2.14 Reverse Mortgages . 6 1.2.15 Land Installment Contracts . 6 1.2.16 Student Loans . 6 1.3 Historical Development of Usury Laws . 6 1.3.1 Early Attitudes Toward Interest . 6 1.3.2 General Usury Statutes in the United States . 7 1.3.3 The Development of “Special” Usury Laws . 8 1.3.4 The Treatment of Sales . 9 1.3.5 Deregulation of Usury Law . 9 1.3.6 Steps Toward Reregulation to Address the Resurgence of Abusive Lending . 11 1.4 Purpose of Consumer Credit Regulation . 13 1.4.1 Unfettered Consumer Credit Market Leads to Extensive Abuse. 13 1.4.1.1 Introduction. 13 1.4.1.2 Credit Transactions’ Complexity and Creditor Discrimination . 14 1.4.1.3 Borrowers’ Inability to Understand Credit Terms. 14 1.4.1.4 Credit Terms Often Are Non-Negotiable and Incomprehensible . .15 1.4.1.5 Borrower Desperation. 16 Online with updates at www.nclc.org/library ix Consumer Credit Regulation 1.4.1.6 Loans Made Without Consideration of Ability to Repay . 17 1.4.2 Does Regulation Increase the Cost of Consumer Credit? . 17 1.4.3 Does Regulation Limit the Supply of Credit? . 18 1.4.3.1 Introduction. 18 1.4.3.2 Many High- Cost Credit Borrowers Qualify for Cheaper, Available Credit . 18 1.4.3.2.1 General . 18 1.4.3.2.2 High rates are as much a function of reverse competition as high risk . 19 1.4.3.2.3 Predatory and discriminatory lenders seek vulnerable consumers to charge high rates irrespective of risk . 19 1.4.3.2.4 High interest rates cause high default rates . 20 1.4.4 Is Limiting the Supply of High-Priced Credit a Bad Thing?. 21 1.5 Types of Creditors . 21 1.5.1 Distinctions Between Depository and Non-Depository Creditors. 21 1.5.2 Banks . 22 1.5.3 Savings and Loan Associations . 23 1.5.4 Credit Unions. 23 1.5.5 Finance Companies and Other Licensed Lenders . 24 1.5.6 Retail Sellers.