ST. PAUL, Minn. – The Minnesota Court of Appeals ruled last month that lenders are not required to disclose to retail vehicle loan customers the difference between the annual percentage rate they offer dealerships – know as the buy rate – and the interest rates that dealerships quote to customers. In a decision consistent with previous court rulings, the Minnesota Court's decision rejected class-action claims that Ford Motor Credit Co. engaged in deceptive business practices based on failure to disclose markups on its loans. In announcing his decision, Judge Randolph Peterson said when a retail installment contract fully discloses the total amount the consumer is required to pay, the dealer discount or markup is immaterial. He added that neither the Truth in Lending Act nor the consumer protection statutes imposes on dealers the duty to disclose that Majors seeks to create.
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