What is the Retail Installment Sales Financing Act?

A Retail Installment Sales Financing Act is a state law that governs retail installment contracts. A retail installment contract is one where the lender maintains title to the property, such as a car, and the borrower has use of the property and makes regular installment payments toward the purchase of the property. It is often used in the purchase of motor vehicles. While each state’s Retail Installment Sales Financing Act is different the law generally describes the required, optional and prohibited items in a retail installment contract. Some state laws are limited to motor vehicles and other states have broader laws that include other types of personal property.