Tucson Bankruptcy Blog
Truth In Lending Act – Understanding Your Consumer Rights
The Truth in Lending Act (TILA) was intended as a consumer protection against lenders lying or otherwise altering agreed upon terms. TILA requires lenders to fully disclose the terms of the credit being offered including full transparency concerning:
(1) interest rates
(2) the amount/percentage required to satisfy the loan
(3) time limits
(4) penalties, and
(5) loan ownership.
TILA allows consumers to file suit against lenders that attempt to claim a term or condition on a loan that they never disclosed. Important terms to understand include: APR, interest, finance charges, points, service/carrying charges, escrow, loan fees, premiums, broker fees, and appraisal fees.
Consumers are responsible for understanding the rules that are presented; if terms are disclosed and then agreed to, not understanding agreed upon terms is not a valid excuse and will not protect the consumer.
KEYWORDS: TILA, Truth in Lending Act, Credit, Disclosure, Consumer Protection, Arizona Bankruptcy
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