(1) Since installment contracts are executory in nature and cover rights and obligations over an extended period of time prior to final settlement, it is deemed advisable to clarify and define the nature of the contract and the rights and obligations of both parties.

(2) It is the intent of this act to provide for an agreement that will be fair and equitable for both buyer and seller and will protect the buyer from unreasonable provisions pertaining to installment payments and to define what constitutes default and to provide remedies for the same and provide proper provisions for final settlement and delivery of good title to the purchaser.

(3) By reason of the fact that the installment sales agreement is executory in nature under its terms and final settlement is not contemplated for an extended period of time, the buyer is entitled to have full information and disclosure of the terms of his agreement, the status of his account, the balance due on the purchase price and a statement of the application of his monthly installment with the proper itemization of what constitutes principal payments and carrying charges during the existence of the agreement.