Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 17

Sharron Poulin purchased a Saturn automobile from Balise Auto Sales Inc. (Balise) for $8,440. The NADA Official Used Car Guide, Eastern Edition (NADA Guide), listed the market value of this car as $3,900. Poulin executed a retail installment contract, which Balise subsequently assigned to Auto Credit Express Inc. (ACE). Balise had a policy that for a newer car, it advertised a retail price roughly the value in the NADA Guide. For an older car, however, Balise did not advertise a retail price. When prospective buyers with poor credit approached Balise, it steered them toward an older car and sold the older tars at prices substantially higher than the values in the NADA Guide. Poulin sued Balise, alleging violation of a TICA provision requiring a creditor to disclose any finance charge it imposed on a consumer. She alleged the amount in excess of the NADA Guide value Balise charged customers for older cars was a hidden finance charge buried in the price of the cars it sold to customers with poor credit. Did Balise's policy violate the TILA?