What can I do if my lender violated TILA?

The Truth In Lending Act (TILA), which is part of the larger Consumer Credit Protection Act, was meant to protect consumers against predatory lending. It provides rules regarding credit arrangements by financial institutions and lenders. This act attempts to prevent creditors from taking advantage of the consumers they lend money to.

TILA does this by naming a list of disclosures that creditors must provide. This list includes the terms of credit arrangements, as well as the costs that are involved. Under the act, creditors must disclose their terms in a clear and obvious manner, in writing, and including specific details such as:

The identity of the creditor
The finance charge
The payment schedule
The annual percentage rate

If any of these requirements are not met by the creditor, then they have violated TILA. In such a case you, as the consumer, will have the right to legal recourse. If your lender has violated TILA you may:

Rescind a loan within 3 days after signing mortgage papers. If 3 days have elapsed, and the lender has filed for foreclosure against you, then you will have 3 years from the time of the lender’s violation to rescind the creditor’s loan

File civil actions for any damages that you have incurred
Receive compensation for legal fees associated with a successful rescission
In civil actions you may be able to receive twice the correct finance charge, but not less than $100 or more than $1000
In class action lawsuits you may be able to receive an amount handed down by the court, with no minimum for an individual class member, and a maximum settlement of $500,000 or 1% of the lender’s net worth

For more information on your rights against predatory lending you contact a Massachusetts consumer rights attorney. The direction your case will take will depend on the nature of the loan, as well as the infractions committed.

Contacting a Massachusetts Consumer Rights Attorney

If you believe you have been the victim of predatory lending but aren’t sure how to proceed, contact a Massachusetts consumer rights attorney at Phillips & Garcia to schedule your FREE legal consultation today – 1-877-892-5620.