Violations of the Truth in Lending Act


Creditors are liable for violation of the disclosure requirements, regardless of whether the consumer was harmed by the nondisclosure, UNLESS:


The creditor corrects the error within 60 days of discovery and prior to written suit or written notice from the consumer, or

The error is the result of bona fide error. The creditor bears the burden of proving by a preponderance of the evidence that:

If the violation was unintentional, the error occurred notwithstanding compliance with procedures reasonably adapted to avoid such error. (Error of legal judgment with respect to creditor's TILA obligations not a bona fide error.)


Civil remedies for failure to comply with TILA requirements:


Action may be brought in any U.S. district court or in any other competent court within one year from the date on which the violation occurred. This limitation does not apply when TILA violations are asserted as a defense, set-off, or counterclaim, except as otherwise provided by state law.


Private remedies - (applicable to violations of provisions regarding credit transactions, credit billing, and consumer leases.)


Actual damages in all cases.


Attorneys' fees and court costs for successful enforcement and rescission actions.


Statutory damages:


For individual actions, double the correctly calculated finance charge but not less than $200 or more than $2,000 for individual actions.


For class actions, an amount allowed by the court with no required minimum recovery per class member to a maximum of $500,000 or 1% of the creditor's net worth, whichever is less.


Damages can be imposed on creditors who fail to comply with specified TILA disclosure requirements, with the right of rescission, with the provisions concerning credit cards, or with the fair credit billing requirements.