Which statement correctly describes truth-in-lending disclosures in Wisconsin financing?

• A. They apply only to new cars.
• B. They are optional.
• C. They are required for both dealer and third-party financing and must be compliant with the law.
• D. They apply only to extreme high-risk loans.

Answer: (C)

Truth-in-lending disclosures show the true cost of credit and help you compare offers. In Wisconsin auto financing, these disclosures must be provided whenever a consumer credit transaction is used to finance a vehicle, whether the loan is arranged by the dealer or obtained from a third-party lender. They must meet the requirements of the law, including details like the annual percentage rate, amount financed, total finance charges, and the payment schedule. This is why the correct statement is that they are required for both dealer and third-party financing and must be compliant with the law. They aren’t limited to new cars, aren’t optional, and aren’t restricted to extreme high-risk loans.