Truth in Lending Act Lawyers

Locate a Local Business Lawyer

Find Lawyers in Other Categories
Most Common Business Law Issues:

When Is a Creditor Required to Disclose Information?

The Truth in Lending Act provides requires that creditors make certain disclosures when a consumer is applying for a loan or credit card. The Act applies to a creditor when four requirements are met:

  1. Credit is offered to consumers
  2. Credit is offered or extended regularly (more than 25 times a year)
  3. The credit is mostly for household, family, and personal purposes
  4. The credit is subject to a finance charge or payable in more than 4 installments by written agreement

The act does not apply to:

  1. Creditors who extend credit mostly for business, commercial, agricultural, or organizational purposes
  2. Student loan programs
  3. Close-ended Credit Transactions (ex. Sales credit and loans)

What Must a Creditor Disclose to a Consumer?

A creditor must make the following disclosures:

For open-ended credit transactions, such as home equity lines or bank credit cards, extra disclosures need to be made:

What Happens If a Creditor Violates the Act?

Creditors are liable for not meeting all of the disclosure requirements, even if the consumer is not harmed by the creditor’s failure to disclosure. However, there are two exceptions:

  1. The error is corrected within 60 days of discovery by the creditor (not by the consumer); or
  2. The failure to disclose is a genuinely unintentional error

Should I Seek Legal Help?

If your creditor has not made sufficient disclosures, you may be entitled money damages. You should consult with a consumer protection lawyer who will be able to advise you of your rights and options.

Consult a Lawyer - Present Your Case Now!
Last Modified: 09-30-2016 03:22 PM PDT

Find the Right Lawyer Now

Link to this page

Law Library Disclaimer

LegalMatch Service Mark