As a consumer, understanding the rights afforded to you is critical. Unfortunately, many people are unaware of the laws to protect their rights and ensure that creditors and lenders do not take advantage of unsuspecting customers. One of the most important laws is the Truth in Lending Act (TILA). If you’re unfamiliar with the rights afforded to you under this law, you’ll want to keep reading. Additionally, you’ll discover how an experienced Arroyo Grande consumer lawyer can assist you if you have reason to believe your rights were violated by a predatory lender.
What Is the Truth in Lending Act and What Does This Protect?
The Truth in Lending Act was established in the late 1960s to ensure transparency for consumers. Many contracts and legally binding loan documents are full of legal language the average consumer may not understand, and lenders would take advantage of that to manipulate and trick consumers. As such, the TILA requires full disclosure of loan details before the extension of money.
The TILA requires lenders to clearly explain, document, and present information to consumers before they sign any legally binding documents. This information includes annual percentage rates (APR), the loan length, the total cost, and associated penalties.
One of the main purposes of the TILA is to allow consumers the right to shop around for loans, keeping the market competitive. This allows consumers to explore their options and choose the best one for their needs. In addition, the TILA allows consumers 72 hours to reverse their decision without financial penalties. This helps allow consumers to back out of a deal they may have only signed due to immense pressure from the salesperson.
Finally, the Truth in Lending Act was expanded to include other acts for consumer protection. These include the Fair Credit and Charge Card Disclosure Act, The Home Equity Loan Consumer Act, the Home Ownership and Equity Protection Act, and the Fair Credit Billing Act.
Can an Attorney Help Me if My Rights Are Violated?
If you have reason to believe your rights under TILA were violated, it’s imperative to understand what you should do. Generally, if you receive false information or are the victim of other deceptive business practices from a lender, you may be able to file a lawsuit against the lender. As a consumer, you are entitled to statutory damages, which are generally limited to twice the amount of the finance charge, but not less than $400 or exceeding $4,000.
Unfortunately, consumers are unaware that they can fight for damages if they are the victims of a TILA violation. If you have reason to believe your rights were breached, the team at Loker Law, APC can help. We understand how complex these matters can be, which is why we are dedicated to fighting for you. Connect with us today to learn more.
