The federal Truth in Lending Act (TILA), implemented by Regulation Z, requires dealers and lenders to disclose the annual percentage rate (APR), the total amount financed, the total of payments, and the finance charge before you sign a financing contract. These disclosures must be accurate. A dealer who quotes you one interest rate verbally and puts a different rate in the contract has violated TILA.

'Payment packing' is a common dealer tactic: the finance manager focuses your attention on the monthly payment rather than the total cost of the loan. By extending the loan term or adding products to the contract, the dealer can keep the monthly payment the same while significantly increasing the total amount you pay. This practice can violate FDUTPA when it is used deceptively.

'Dealer reserve' or 'dealer markup' is the practice of marking up the interest rate above what the lender actually requires. The lender approves you at, say, 5% APR, but the dealer tells you the rate is 8% and pockets the difference. While dealer reserve is not per se illegal, it becomes a FDUTPA violation when the dealer misrepresents the rate as the 'best available' or 'what the bank requires.'

If you believe your financing terms were misrepresented, compare the verbal representations made during the sale with the written contract. The TILA disclosure box in your retail installment sales contract shows the APR, total amount financed, total of payments, and finance charge. If these numbers do not match what you were told, you may have a claim.

TILA violations can result in rescission of the credit transaction, actual damages, statutory damages of up to twice the finance charge (minimum $200, maximum $2,000 for individual actions), and attorney's fees. FDUTPA violations result in actual damages and attorney's fees. Contact an attorney to evaluate your specific situation.