Adequate Notice

AAA

DEFINITION of 'Adequate Notice'

A written document that specifies in detail the terms and conditions of a loan or extension of credit to a consumer. Adequate notice requires the consumer to be informed of key details of the credit arrangement, such as the annual percentage rate, grace period, annual fee, etc.

INVESTOPEDIA EXPLAINS 'Adequate Notice'

The Truth in Lending Act requires lenders to disclose key terms of a credit arrangement to borrowers before they sign the agreement. The concept of adequate notice is designed to protect the consumer by ensuring they are made aware of all the key details of a proposed credit arrangement.

RELATED TERMS
  1. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Regulation Z

    A specific Federal Reserve Board regulation that requires debt ...
  4. Truth In Lending Act - TILA

    A federal law enacted in 1968 with the intention of protecting ...
  5. Grace Period

    A provision in most loan and insurance contracts which allows ...
  6. Finance Charge

    A fee charged for the use of credit or the extension of existing ...
Related Articles
  1. What's On A Consumer Credit Report? ...
    Credit & Loans

    What's On A Consumer Credit Report? ...

  2. Watch Out For Changes In Credit Card ...
    Credit & Loans

    Watch Out For Changes In Credit Card ...

  3. How To Read Loan And Credit Card Agreements
    Credit & Loans

    How To Read Loan And Credit Card Agreements

  4. The History Of Consumer Credit Rights
    Credit & Loans

    The History Of Consumer Credit Rights

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center