The Truth In Lending Act

With a stated objective to help consumers, Congress deemed it fit that to enhance "economic stabilization and competition among the various financial institutions," lenders must give written disclosures on cost of credit and various terminology of repayment.

Thus lenders are required by law to make detailed disclosures on:

Costs of all loans with the annual percentage rate (APR).

All kinds of financial charges.

Features of floating rate loans and fixed rate loans.

Pre-payment penalty clauses.

Payment due date and allied terms and conditions.

Identity of the creditor and the amount financed.

The Truth in Lending Act (TILA) applies to every individual or business where these conditions are met:

Credit is offered to consumers on a regular basis.

The credit is mainly for household or personal purposes.

The credit is subjected to a finance charge.

However The Truth in Lending Act does not apply to:

Creditors who advance credit for business or commercial interests.

Student loan programs.

Various remedies are available to borrowers for failing to comply with the Truth in Lending Act. Punitive action can be brought in any U.S. Court within one year of which the violation has occurred. Remedies that can be obtained are as follows:

Actual damages in all cases.

Attorney's fees and court costs.

The right to cancel real estate lending transactions within three business days, also known as the right to rescission.

A fine of $5,000 or imprisonment of up to one year or both.

To sum up, the Truth in Lending Act is a useful instrument for borrowers to gauge the bona fides of a creditor while applying for a home equity loan. Moreover, it also allows the government to nail unscrupulous lenders.

Home Equity Loans - Rates, in depth articles and professional second mortgage advice. Find the lowest home equity loans rates and lenders.

---

Guide to Homeowner Loans

Here is a useful guide to Homeowner Loans. A Homeowner... Read More

To Find The Right Loan You Must First Find The Right Lender

We have found internet shoppers to be the savviest in... Read More

Secured Business Loans ? Equipping Your Business Blueprint With Concrete Groundwork

Somebody once said, 'Business is not financial science; it's about... Read More

Is Getting A Personal Loan With Bad Credit Impossible? Think Again

A bad credit history is like having contracted an infectious... Read More

Making Cars Accessible Through Secured Car Loans

Enervated by the hectic schedule at the work place, traveling... Read More

Benefits of a Business Loan

There are many benefits in choosing a business loan, some... Read More

Home Loans in the UK

Owning a home is the most important dream of any... Read More

Top 10 Ways to Avoid Loan Fraud

Every year, misinformed homebuyers, often first-time purchasers or seniors, become... Read More

What is a Tenant Loan?

Ever wondered what is a Tenant Loan? A tenant loan... Read More

A Brief History of Loans

No one can say for certain where the history of... Read More

How to Make Sure You Become a Profitable Trader

Regardless of your trading style; day trading, swing trading, or... Read More

When is a Commercial Lender not a Commercial Lender?

A Commercial Lender is Not a Commercial Lender When it... Read More

Simple Tips On Getting Your Loan

So, you want to get a loan?Here are some simple... Read More

Making Your Business Happen with a Commercial Lender

If your home business is starting to overflow from the... Read More

A Guide to Looking for Cheap Online Loans

Cheap online loans may seem hard to come by, but... Read More

Bank Auto Loans ? Best Loans for Stretch Commuters?

People have to work to survive. The desire to maintain... Read More

Want a Cheaper Finance for Your Vehicle? Try Secured Automobile Loans

The usual modus operandi in most automobile purchases is as... Read More

It Only Takes a Few Simple Steps To Avoid Student Loan Debt

Student loan debt is a problem that affects many former... Read More

Auto Loan Buying Tips

Have you ever felt like you bought an auto and... Read More

Finding the Secured Homeowner Loan for You

If you've been thinking of getting a secured homeowner loan,... Read More

Loans - Good or Bad Debt?

When borrowing money it is usually because we lack the... Read More

Taking the Edge Off of Military Motorcycle Loans

So you have decided you want a motorcycle and you... Read More

Personal Loans for Bad Credit Can Discipline Repercussions of Negative Credit

Bad credit is like an ongoing battle for many loan... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

What is Credit Insurance?

Are you wondering what is credit insurance? Very simply, credit... Read More

A College Loan Will Finance Your Education!

A college loan has given people all over the United... Read More

Fast Cash Payday Loans

If you need cash now there are several options available... Read More

A Beginners Guide to Online Loans

If you're just beginning to look at online loans, you... Read More

PayDay Cash Advance Loans - The Benefits of Using the Payment Protection Plan

Payment protection plans are offered by payday companies to protect... Read More

Debunking the FAFSA Myth

With the plethora of big-business entities jockeying for the money... Read More

Secured Loans Information

A secured loan is a personal loan which is generally... Read More

Facts You Should Know About Types of Loans

When you set out to borrow, you often come across... Read More

Bad Credit Wedding Loans in Case You want to Race Towards the Altar with Bad Credit

So you are engaged. Congratulations. It was not easy. What?... Read More