The Truth in Lending Act (“TILA”) is a federal statute that protects consumers from confusing or deceitful lending practices. As a consumer, you have the right to detailed and clear disclosures from your lender, including:
- Amount of loan and payment amounts
- Prepayment penalties
- Due dates and late charges
- Annual percentage rate (APR) for mortgage
- Service or application fees
The law requires lenders to be honest in disclosing the details of a loan, and provide consumers with a document known as the Truth in Lending Statement, which allows consumers to make responsible credit decisions and easily compare rates between lenders. You may be entitled to compensation if your lender has not properly provided you with these disclosures. This may can include actual damages – the financial harm you suffered as a result of the inadequate disclosure – and statutory damages of $100 to $1,000.
In addition, the right of rescission is available to consumers who take out a home equity line of credit or refinance their homes with a lender outside of their mortgage provider. The law gives consumers the right to cancel the credit transaction within three days of closing. This period allows homeowners to evaluate and contemplate a transaction that gives a lender a security interest in their homes.
At Glancy Prongay & Murray we have experienced consumer law attorneys that will fight to protect your rights. If you have been a victim of fraudulent lending practices call our offices for a free and confidential claim review.
