The Truth in Lending Act

 

 

The truth in lending Act (TILA) was enacted by Congress in 1968 as part of the Consumer Protection Act to help regulate credit transactions.  In essence TILA's purpose is to maintain accurate information on consumer credit transactions.  With the enactment of TILA, consumers can now determine the true costs of their credit transactions and they can compare credit lending institutions to one another because there are disclosure requirements by which all lenders must abide.

 

Required Disclosure Statements

 

  • Initial Disclosure Statement

  • Periodic Statements

  • Credit and Charge card application and solicitation disclosures

  • Home Equity Plans

  • Annual Percentage Rate

  • Fees for insurance or availability

  • Minimum Finance Charge

  • Transaction Charges

  • Grace Period

  • Balance Computation Method

  • Statement on Charge Card Payments

  • Cash-Advance Fee

  • Over-the-Limit Fee

 

TILA Links

Truth in Lending Act - Wikipedia

Truth in Lending Act - Cornell

TILA Questions & Answers

TILA Attorney Directory

Featured TILA Attorneys

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TILA Scope

Regulation Z, which is the backbone of the Truth in Lending Act, sets fourth the scope of the act.  The Truth in Lending Act applies to individuals or businesses when four conditions are met, which are outlined below:

  • "The credit is offered or extended to consumers;

  • The offering or extension of credit is done regularly;

  • The credit is subject to a finance charge or is payable by a written agreement in more than four installments; and

  • The credit is primarily for personal, family, or household purposes."  

Remedies

A violation of the Truth in Lending Act allows consumers to to collect statutory damages of twice the finance charge, with a minimum of $100.00 and a maximum of $1,000.00.  If a close-end mortgage is involved, the minimum and maximum a consumer may collect is $100.00 and $1,000.00, respectively.  Consumers may also collect actual damages and file class actions.  Attorneys may recover "reasonable attorneys fees" and file class actions.