Truth in Lending Act (TILA) Violations | Free Case Evaluations 24/7
TILA is a federal law intended to assure a meaningful disclosure of credit terms. This is so the consumer will be able to compare the various credit terms available and avoid the uninformed use of credit while establishing a fair and competitive financial marketplace. TILA’s origins date back to 1968 when the law was enacted by Congress, which later gave the Consumer Financial Protection Bureau the authority to write the regulations that implement TILA.
Our team of attorneys is currently investigating a potential Truth in Lending Act violation on behalf of American Express credit card holders. The Annual Percentage Rate information disclosed in billing statements was incomplete, in violation of the Truth in Lending Act. Were you an AMEX cardholder in May, June and/or July 2016? Were you an AMEX cardholder in August or September 2019? You may be eligible for compensation.
The Carlson Law Firm is currently accepting clients who were affected by Discover’s violations of the Truth in Lending Act (TILA). If you are a past or current Discover card customer, you may be entitled to compensation through a Discover TILA Violation Lawsuit.
The Carlson Law Firm has extensive knowledge of the consumer protection laws that are in place to guard against unfair practices. We take the time to understand your needs as well as to examine all of the details surrounding your case to help craft effective solutions.
Under TILA, creditors are protected against the following practices:
Failure to disclose
Unfair credit card practices
Unfair credit billing
Under TILA, borrowers are protected by the following practices:
Requiring full disclosure of loan costs and terms
Creating the right of rescission (allowing creditors to back out from loans in a limited time)
Providing channels for alternative dispute resolution
Directing borrowers to put creditors on notice when their mortgage is reassigned
Placing caps on high cost mortgages and some types of home equity lines of credit
Providing better protections for borrowers’ primary residences secured by loans
The Truth in Lending Act is divided into several subparts:
Subpart A – contains the information needed to understand the rest of the Act, such as rules of construct, and definitions.
Subpart B – is concerned with open-end credit lines, such as credit cards and home equity loans.
Subpart C – deals with closed-end credit, such as loans to purchase cars or houses, which come with fixed loan terms, meaning they end on a certain date. Certain aspects of the loan process covered under this subpart include rules pertaining to disclosure, annual percentage rate calculations, and right of rescission.
Subpart D – narrows down the more specific issues, such as the rules pertaining to oral disclosure, exemptions by state, and rate limitations.
Subpart E – consists of special rules that apply to mortgage transactions, such as the practices relating to “high-cost” or “higher-priced” mortgages, and the requirements for home equity plans and reverse mortgages.
Know Your Rights Under the Truth in Lending Act
As an economy that relies heavily on credit card usage, the standardized disclosures and billing rules that credit card companies must adhere to are an integral part of TILA. TILA requires lenders to disclose information in a standardized way to prevent consumers from unknowingly signing bad deals, as well as protects them from unfair billing practices by requiring disclosure rules.
U.S. lending laws give credit card issuers a lot of freedom to set terms, but in exchange, they are subject to stiff penalties when they don’t disclose their terms properly.
A few examples of disclosures that card issuers must provide include:
A standardized set of conditions under which finance charges are imposed, as well as information about grace periods
The methods issuers use to determine finance charges as well as other assessments such as late fees, annual fees and over-the-limit fees
The annual percentage rate on the account