Truth in Lending
The Truth in Lending Act, commonly referred to as “TILA,” was enacted so that lenders will be required to make borrowers aware of the true the cost of credit. TILA applies to consumer loans, such as personal credit cards and loans for personal residences. It does not generally apply to business or investment loans.
TILA requires lenders to provide enough information to allow a consumer to compare the various credit terms available to him or her and avoid the uninformed use of credit. The law also protects the consumer against inaccurate and unfair credit billing, credit card and mortgage lending practices.
TILA gives borrowers the opportunity to enforce their rights in any debtor/creditor situation where full disclosure was missing or where misleading information was provided about a loan. In the current economic circumstances, TILA often provides a debtor with defenses against debt collection lawsuits. Even if the law does not provide a complete defense to a debt collection case, it frequently provides a basis for a court to award the debtor some of his/her attorney fees spent in defending against the case or a home foreclosure.
TILA has different provisions that apply to residential mortgages and to “open ended” credit, such as credit card accounts. If you think that a lender did not provide you with complete and truthful information about your credit card, automobile or home loan, you may have a claim under TILA. Give me a call so we can discuss your situation.
The Truth in Lending Act, commonly referred to as “TILA,” was enacted so that lenders will be required to make borrowers aware of the true the cost of credit. TILA applies to consumer loans, such as personal credit cards and loans for personal residences. It does not generally apply to business or investment loans.
TILA requires lenders to provide enough information to allow a consumer to compare the various credit terms available to him or her and avoid the uninformed use of credit. The law also protects the consumer against inaccurate and unfair credit billing, credit card and mortgage lending practices.
TILA gives borrowers the opportunity to enforce their rights in any debtor/creditor situation where full disclosure was missing or where misleading information was provided about a loan. In the current economic circumstances, TILA often provides a debtor with defenses against debt collection lawsuits. Even if the law does not provide a complete defense to a debt collection case, it frequently provides a basis for a court to award the debtor some of his/her attorney fees spent in defending against the case or a home foreclosure.
TILA has different provisions that apply to residential mortgages and to “open ended” credit, such as credit card accounts. If you think that a lender did not provide you with complete and truthful information about your credit card, automobile or home loan, you may have a claim under TILA. Give me a call so we can discuss your situation.