South Florida Bankruptcy Lawyer
Truth in Lending Act
Passed in 1968, the Truth in Lending Act is a federal law that requires creditors to disclose the cost of credit in consumer transactions. The list of creditors includes institutions such as:
- Banks
- Department stores
- Credit card issuers
- Finance companies
- Similar lending institutions
The rule falls under the umbrella of the federal Consumer Credit Protection Act.
Your Rights Under TILA
A creditor is required to show a potential borrower in writing
- The amount being financed
- The monthly payment
- The number of monthly payments
- The dollar amount of the finance charge
- Annual percentage rate
This must be done before the borrower and lender enter into an installment contract. A lender who does not comply is in violation of the TILA, and subject to charges and penalties.
Annual Percentage Rate
The APR is an annual rate that relates the total finance charge to the amount of credit that a borrower receives and the length of time he or she has to repay it. Credit is purchased with a certain period of time attached to it. The total dollar amount of the finance charge will depend on how many dollars worth of credit is obtained initially and how many months those dollars are used for.
Speak with South Florida Bankruptcy Lawyers
Deceptive credit practices have caused consumers to ruin their finances. If your finances are suffering because of credit or lender abuse, bankruptcy may be your first step towards financial freedom. Contact the South Florida bankruptcy lawyers of Eric N. Klein & Assoc., P.A. at 561.353.2800 today.
