Definition of Adequate notice

An adequate notice is essentially a written live of document that provides the specifications and relevant details regarding the terms and conditions that are subsequently applied on a loan request or the extension of the credit offered to a consumer.

Brief Explanation of Adequate notice

In order to avoid any problems and financial issues in the course of the loan payment, the Adequate notice informs the consumers about the important details of the credit arrangements. This could include the annual percentage rate, the explanation of the grace period and the total annual fee incurred. In order to ensure transparent credit transactions the Truth in Lending Act makes the lenders liable to disclose all the key terms of the credit arrangements to the borrowers before they proceed to sign the agreement. This concept is put forth to protect the consumer against all the hidden charges or terms that might not to feasible for the consumer to imply in the proposed credit arrangement.