As a consumer, when you apply for a loan, you are likely presented with an overwhelming amount of paperwork that details all the terms and conditions of your agreement with the lender. These can be incredibly complex and full of legal jargon, leading many to simply skim the text before signing. However, familiarizing yourself with your rights and the common information included in these agreements is critical. Luckily, the Truth in Lending Act (TILA) was enacted to help preserve the rights of consumers. The following blog explores this law in further detail and explores why you should connect with a San Diego consumer lawyer if you believe your rights were violated.
What Function Does the Truth in Lending Act Serve?
The Truth in Lending Act was introduced into law in 1969 to ensure that consumers receive complete, honest, and fair information from lenders. Essentially, this act requires that lenders provide clear and explicit terms before extending credit. This generally includes the annual percentage rate, how long the loan term is, and the total cost for the borrower. This information must be documented, clearly stated, and presented to the borrower before authorizing the loan. Ensuring consumers understand these terms before signing a lease allows them to explore their loan options.
This act also grants consumers the right to rescind their agreement within three days of their decision without losing money. Unfortunately, many borrowers feel pressured to decide due to the manipulative tactics of salespeople, meaning they may regret their choice. As such, they have 72 hours to reverse their decision without financial penalty.
Over time, the TILA has evolved to include other acts to help protect the rights of consumers. These include the Fair Credit Billing Act, the Fair Credit and Charge Card Disclosure Act, the Home Equity Loan Consumer Act, and the Home Ownership and Equity Protection Act.
What Should I Do if I Think My Rights Were Violated?
If you believe your rights under the TILA were violated by deceptive business practices, understanding what you can do as a consumer to recover justice is critical. As such, if you discovered that you received improper disclosure of the finance amount, payment date, APR, or finance charge, you may be eligible to file a lawsuit against the deceptive lender.
Unfortunately, many consumers aren’t sure what to do when they discover they are a victim of manipulation or a TILA violation. However, you have the right to file a claim to fight for justice. It’s imperative to understand that you should not do this by yourself. Instead, it’s in your best interest to connect with the team at Barthel Legal. Our dedicated consumer lawyers will do everything possible to fight for you during these challenging matters. Contact us today to learn how we can fight for you.
