Which Credits Are Exempt From TILA? |
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| 1. Business, commercial or agricultural.
2. Public utility. 3. Securities or commodities accounts. 4. Home fuel budget plans, if no finance charges. 5. Certain student loans. |
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Which disclosures are required? |
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| The disclosures for a closed-end credit are set forth in 15 U.S.C. 1638; Reg Z § 226.17 and §226.18.
Failure to disclose specific information correctly triggers TILA statutory damages remedy: 1. Total Finance Charge (charges payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or condition of the extension of credit; exclusions; tolerance). 2. Amount financed. 3. Annual Percentage Rate (APR), Tolerance is 0.125%. 4. Payment Schedule 5. Total of Payments. 6. Security Interests 7. Special formatting rules ("clear and conspicuous", reflect legal obligations, and in a form you can keep). 8. Disclosures must be provided timely, in a form the consumer may keep before consummation. 9. Special disclosures for variable-rate closed end loans. Where a material disclosure was not given or inaccurate (APR, finance charge, amount finance, payment schedule, or total payments), or consumer was not provided with proper notice of right to cancel, the right of rescission is extended to 3 years. Statutory (up to $4,000) and actual damage, as well as attorney's fees, may also be available for the violations noted. 15 U.S.C. § 1635(a),(f). |
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Truth in Lending Act (TILA)
Part 5 of 6