Question: Barnes borrows $10,000 from Linda for one year, agreeing to pay Linda $2,000 in interest on the loan and to repay the loan in twelve

Barnes borrows $10,000 from Linda for one year, agreeing to pay Linda $2,000 in interest on the loan and to repay the loan in twelve monthly installments of $1,000. The contract which Linda provides and Barnes signs specifies that the annual percentage rate is 20 percent. Does this contract violate the Federal Consumer Credit Protection Act? Why?

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Yes judgment for Barnes The true APR is approximately 40 ... View full answer

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