The Truth In Lending Act (TILA) was passed into U.S. law in 1968 to protect consumers against the unethical practices of predatory lenders. The purpose of TILA is to assure that lenders disclose the terms of their agreements, as well as their finance costs.
Listed below are the TILA requirements for how creditors must disclose their practices:
In a clear and obvious manner
In a meaningful sequence
In a form that the consumer can keep
There are also clear TILA guidelines for that information must be disclosed:
The identity of the creditor
The amount financed, as well as itemization of this amount
The finance charge
The total of payments
The annual percentage rate, including variable rates
The payment schedule
Any prepayment or late payment penalties
A statement of billing rights
TILA was meant to protect consumers, and therefore any creditor or lender who does not meet these requirements will be held liable for violation. There are a number of steps that a consumer may take if they have been a victim of predatory lending. These include:
In mortgage cases, a borrower may rescind the loan if it is within 3 days after signing the mortgage papers.
Civil actions, such as individual lawsuits or class action lawsuits
The recovery of attorney’s fees and court costs in the case of a successful civil action
Contacting Massachusetts Consumer Rights Attorneys
If you are considering filing a claim after having been the victim of a bank or lender’s unethical practices, contact the Massachusetts consumer rights attorneys at Phillips & Garcia to schedule your legal consultation today – 1-877-892-5620.