Which of the following agreements for payment plans is not subject to TILA and does not require a signed Truth in Lending Statement?
A) Specific agreement for less than four installments and finance charge
B) Specific agreement with more than four installments and finance charge
C) No specific agreement with more than four installments and no finance charge
D) Credit card or loan specifically for healthcare treatment
E) All of the above

Question

Quizplus · Accepted Answer

As long as no specific agreement has been made for payment to the provider to be made in more than four installments and no finance charge is assessed, the account is not subject to TILA and does not require a signed Truth in Lending Statement. When offering credit options for patients, the healthcare facility should be in compliance with Regulation Z of the Truth in Lending Act (TILA). TILA, which is enforced by the Federal Trade Commission (FTC) and is part of the Consumer Credit Protection Act, requires that individuals be provided certain information when credit is extended, such as the annual percentage rate (APR), the terms of the loan, and the total costs to the borrower. If an agreement exists between provider and patient that the healthcare facility will accept full payment in more than four installments, the healthcare facility must provide a Federal Truth in Lending Statement, even if no finance fees are charged, and it should be signed by the healthcare facility representative and the patient.

Which of the Following Agreements for Payment Plans Is Not