time-price differential


Also found in: Legal.

time-price differential

The difference between the purchase price of a property and the higher total price paid if the purchase is financed. The Truth in Lending Act requires disclosure of the time-price differential in an installment sale contract.

References in periodicals archive ?
The court said that the time-price differential is interest and that the legislature "intended, on the one hand, to free parties to retail installment sales contracts to agree to interest rates reflective of market conditions and, on the other, to protect consumers from overreaching merchants by imposing an absolute cap of 30 percent within which the parties to a RISA contract could negotiate.
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