The Truth in Lending Act, or TILA, is a federal statute that was enacted in 1968, to provide protections which were not previously guaranteed, to consumers who used credit for purchases. This included both open-ended credit, such as credit cards, and closed-ended credit, such as home and auto loans.
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The TILA does not govern interest rates, but does require that interest rates and other terms of credit or loan agreements to be disclosed to consumers. The information must be provided prior to a consumer signing a contract for a loan or credit. This allows consumer to shop among lenders and pick the one that has the most favorable terms.
Creditors are subject to the TILA if all of the following requirements are met:
The Act does not apply to:
A creditor must provide the following information to a consumer for closed-ended credit transactions:
A creditor must provide the following information to a consumer for open-ended credit transactions:
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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:
Consumers may, if necessary, file suit against the creditor in any U.S. District court. A statute of limitations of one year generally applies.
Complaints may also be filed with the Federal Trade Commission, the agency responsible for regulating creditors.
If you believe you have been subject to a violation of your rights under the Truth in Lending Act, you may wish to contact a local finance attorney, who can explain your rights and potential remedies under the Act. If your creditor/lender clearly violated the law, then it is possible for you to file a lawsuit or be able to dispute any penalties you might be facing.
It's important to have all documentation and information about your situation at hand, and that you already filed a claim with the FTC and other government agencies. Taking these first steps will give your lawyer the best chance for success!
Last Modified: 05-09-2018 11:07 AM PDTLaw Library Disclaimer
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