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Truth In Lending Act Legal Overview

It seems like every transaction these days comes with a terms of service agreement. Most consumers do not read these agreements at length because they are full of confusing legal jargon and offer no alternative if a consumer does decide that the terms are not good for them. Lending agreements between consumers or businesses and creditors are especially confusing. As a result, the average consumer often does not know what he or she is agreeing to when signing a financial agreement. Even some businesses that extend credit to consumers, such as car dealerships, do not fully understand their legal obligations.

Consumers and borrowers have rights. They should know and understand the fees and interest rates associated with the debt they take on. This is where the Truth in Lending Act (TILA) comes in.

Work with our consumer rights attorneys at Johnstone Carroll, LLC. Call our office in Homewood at 205-383-1809. We represent clients throughout Alabama.

What Creditors Must Disclose

The Truth in Lending Act (TILA) outlines the manner in which lending costs are calculated and disclosed to borrowers. It also provides consumers with key rights for fair and timely resolution of billing disputes. TILA applies only to consumer debt, rather than debt used for business or commercial purposes.

Under TILA, a lender must disclose the amount of debt financed, the number of payments that will be made to pay off the debt, the annual percentage rates for the debt and any finance charges the consumer may incur when taking on the debt.

Remember that just because these things are legally defined does not mean creditors always follow truth in lending disclosure laws. Our litigation attorneys are here to make sure your rights as a consumer are protected.

Arrange a consultation with an experienced Birmingham, Alabama, consumer lawyer to discuss whether you have been a victim of predatory lending. We will take the time to answer your questions and guide you through the legal process.


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