
Case summary:
S wanted to purchase a car so after looking for a perfect car for her in different showrooms, she picked one. The dealer gave her the price of $8,000. She is ready to make a down payment of $2,000 from her savings account. Sales person made a contract with all this information on it. She started to look for finance with that contract with her. She met with a banker who told her that our policy only allowed us to make loan when 20% is paid by owner, S showed the agreement and said I am ready to make 25% and that is not a problem for me. Then banker told her that we land at 20% of APR and gave her the Truth-in lending disclosure agreement. She decided to look for more option, and then she finds out that another bank is giving her loan at 20%, so she took loan from first bank.
Character in this case: S and two bankers.
Adequate information:
Price of the car is $8,000.
Down payment is $2,000.
Amount borrowed is $6,000.
APR of first bank is 15%.
APR of second bank is 20%.
Finance charge of Bank A is $1,487.64.
Finance charge of Bank B is $2,027.28.
Total of payment of Bank A is $7,487.64.
Total of payment of Bank B is $8,027.28.
Monthly payment of Bank A is $207.99.
Monthly payment of Bank A is $222.98.
To determine: Most important item disclosed in the disclosure statement and the reason for it.

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