ST. PAUL, Minn. – The Minnesota Court of Appeals ruled lastmonth that lenders are not required to disclose to retail vehicleloan customers the difference between the annual percentage ratethey offer dealerships – know as the buy rate – and the interestrates that dealerships quote to customers. In a decision consistentwith previous court rulings, the Minnesota Court's decisionrejected class-action claims that Ford Motor Credit Co. engaged indeceptive business practices based on failure to disclose markupson its loans. In announcing his decision, Judge Randolph Petersonsaid when a retail installment contract fully discloses the totalamount the consumer is required to pay, the dealer discount ormarkup is immaterial. He added that neither the Truth in LendingAct nor the consumer protection statutes imposes on dealers theduty to disclose that Majors seeks to create.
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