Legal Definitions - consumer-credit sale

A consumer-credit sale refers to a transaction where an individual purchases goods or services primarily for personal, family, or household purposes, and agrees to pay for them over a period of time rather than making a full payment at the point of sale. In such a sale, the seller effectively extends credit to the buyer, allowing the buyer to take immediate possession of the goods or receive the service while deferring full payment, often with interest or finance charges applied to the outstanding balance.

Here are some examples to illustrate a consumer-credit sale:

• Example 1: Appliance Purchase

  Imagine Sarah needs a new washing machine. She visits an appliance store and finds one she likes, but she doesn't have enough cash to pay the full price upfront. The store offers her a financing plan where she can take the washing machine home today and pay for it in 24 equal monthly installments, with a small interest rate. Sarah agrees to this plan.

  This is a consumer-credit sale because: Sarah, an individual, is buying a washing machine for her personal household use. She is not paying the full amount immediately but is using credit extended by the store to pay over time, making it a deferred payment arrangement for a purchased good.

• Example 2: Gym Membership

  David decides to join a new fitness center. The center offers an annual membership for $600, but also provides an option to pay $55 per month for 12 months. David chooses the monthly payment option, signing an agreement to pay each month for the duration of the year.

  This is a consumer-credit sale because: David, an individual, is purchasing a service (gym access) for his personal use. He is paying for this service over time through monthly installments rather than a single upfront payment, which constitutes an extension of credit by the fitness center.

• Example 3: Online Course Enrollment

  Maria wants to enroll in an advanced online photography course. The course costs $900. The online learning platform offers a payment plan allowing students to pay in three monthly installments of $300 each. Maria selects this option to spread out the cost.

  This is a consumer-credit sale because: Maria, an individual, is acquiring an educational service for her personal skill development. She is not paying the entire course fee at once but is utilizing a payment plan that allows her to pay in installments over several months, demonstrating the use of credit for a service purchase.