When settling a finance agreement, which action is required?

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Multiple Choice

When settling a finance agreement, which action is required?

Providing the customer with a copy of the agreement is required because it gives them a complete written record of the final terms they agreed to—amount financed, repayment schedule, interest, and any charges. This promotes transparency and lets the customer verify what was agreed, which helps prevent disputes later and meets regulatory expectations that customers receive their own copy of the contract. Other actions don’t fit settlement: a new signature isn’t part of finalizing the deal, removing fees would change the agreed terms, and cancelling automatically ends the agreement without following proper settlement procedures.

Providing the customer with a copy of the agreement is required because it gives them a complete written record of the final terms they agreed to—amount financed, repayment schedule, interest, and any charges. This promotes transparency and lets the customer verify what was agreed, which helps prevent disputes later and meets regulatory expectations that customers receive their own copy of the contract. Other actions don’t fit settlement: a new signature isn’t part of finalizing the deal, removing fees would change the agreed terms, and cancelling automatically ends the agreement without following proper settlement procedures.

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