Adequate Notice


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.

BREAKING DOWN '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.

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  3. Regulation Z

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  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. Annual Percentage Rate - APR

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