Consumer Credit Sale Law and Legal Definition

Consumer credit sale means any sale with respect to which consumer credit is extended or arranged by a seller to a consumer, permitting him/her to use the goods or services during the term of payment. The seller who issues credit in a consumer credit sale is a person who is regularly engaged in credit transactions and the buyer is a person other than an organization. The goods or services that are purchased under a consumer credit sale are goods or services primarily required for personal, family, or household purpose. The debt under consumer credit sale can be paid in installments, otherwise a credit service charge will be made upon the buyer.

Consumer credit sale also includes any contract in the form of a lease or bailment in which a lessee or a bailee contracts to pay as compensation an amount that is equivalent to or in excess of the value of the goods or services involved for the reason of using the goods or services. A bailee or a lessee also agrees to become the owner of the property upon full compliance of his/her obligation under the contract.