TILA, Form of Disclosures

The Truth in Lending Act (TILA) requires that consumers be given specific disclosures before the closing of certain credit transactions. Specifically, disclosures must be “clear and conspicuous(), in writing, in a form that the consumer may keep” 15 U.S.C. 1632(a); Reg Z Sec. 226.5(a)(1).

The disclosures are required only for “material terms” related to the costs of the credit transaction. Material terms are the annual percentage rate. finance charge, method of determining the finance charge, amount financed, total of payments, number and amount of payments, due dates or periods of payments scheduled to repay the indebtedness. 15 U.S.C. 1602(u); Reg. Z Sec. 226.23 n. 48.

As stated above, the Act calls for the disclosures to be made in a clear and conspicuous manner, courts have interpreted this to mean in a manner that can be reasonably understood by an ordinary consumer. Lenders can violate this requirement in a number of ways, including, but not limited to: TILA disclosures contradicting other information provided by the lender, disclosing more than one dollar amount under the same heading, disclosing information in fine print, or disclosing information buried amidst other non-material information.

At Wilson Law Group, we understand the statutory requirements placed on lenders under TILA, and will fight for your rights under these laws and regulations.

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