Truth in Lending Act (TILA)

The Truth in Lending Act (TILA) requires lending institutions to disclose key terms and all costs of the lending arrangement to the consumer in plain and understandable language before the loan is closed. The purpose of TILA is to protect the consumer in credit transactions, and in addition to laying out clear terms, TILA gives consumers the right to cancel certain credit transactions involving liens against their principal dwelling, regulates credit card practices, and requires just and timely resolution of credit disputes.

Attorneys’ fees and costs are recovered as part of damages, similar to the call for recovery in the MCPA, which allows low-income individuals who would otherwise not have recourse to pursue litigation. TILA also grants statutory damages even when actual damages cannot be established.

At Drew, Cooper & Anding, our lawyers have pursued claims for individual cases, as well as class action suits against TILA violations.