What must I include in a retail installment sales agreement?

On Behalf of | May 20, 2021 | Contract Disputes |

Retail installment sales agreements allow a customer to pay over time for a purchase. If you wish to use this type of agreement in your business, it is essential to ensure that your contract contains the correct information.

The Ohio Attorney General explains your agreement must follow the Retail Installment Sales Act.

Fees and other charges

The main regulation for a contract is to include the proper information about fees and other charges you assess against the customer. The law does prohibit some specific charges. These include attorney fees. You want to review language to make sure you are not accidentally including a prohibited fee.


You want to be sure to outline all the details in the contract so there is no question as to what you are charging and what your customer is getting. You should always include the total amount the customer will pay, which will include the total interest charges. You also want to include the cash price of the sale, which is what he or she would pay if they did not finance the purchase.

The contract should outline the finance charges and the number of payments with due dates. It is also important to list any down payment and show the math for how that affects the balance due.

You also need to explain any insurance included in the purchase if applicable. Be sure the contract is clear on all pricing and costs. You do not want a future discrepancy to cost you money or void the contract.

Your retail installment sales agreement needs to follow the law and contain all the requirements under RISA.

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