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After I buy my car, is the bank my "creditor" or is the dealer? How can I tell?

Pittsburgh, PA |

I'll be buying my first car soon, and I want to understand the terminology and how it applies to my situation. What would my purchase look like if it is a purchase-money loan with the bank as my creditor, compared to how it would look as a credit sale with the dealer as my creditor?

I have to send my credit application to the dealer. But my eventual payments will be sent to the bank, after the dealer sales/assigns my installment sales contract to the bank. So who is my creditor under the Truth in Lending laws?

Also, I'll have to pay a finance charge

Attorney Answers 1


  1. Once the dealer assigns the loan to a bank, the bank is your creditor.

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