Banking fees cost consumers more than they realize; banks under pressure from huge losses continue to increase those fees. Your “free checking” may be “bait” for other fees which can cost consumers hundreds of dollars per year. Be careful! In a New York Times article by Eric Dash, banks who received billions of dollars in…Read more
Closed-End Credit Transaction Under TILA
Closed-end credit refers to a credit extended for a particular period of time and is set on a specific amount. For instance, if you purchase a washing machine under the closed-end agreement, a specific payment must be paid within a fixed time period (a specific number of week or months). The credit must be repaid…Read more
Open-End Credit Transactions Under TILA
An open ended credit is generally described as an agreement or a pre-approved loan between the borrower and the financial institution or the lender. The loan can be put to use by the borrower repeatedly, however, only to a particular limit and must be repaid subsequently before the payments turn overdue. To put it simply,…Read more
Real Estate Settlement Procedures Act – RESPA
Someone who is planning to apply for mortgage in order to refinance his/her home must have a clear knowledge of the rights he/she enjoys under the Real Estate Settlement Procedures Act, also known as RESPA. RESPA happens to be a consumer protection statute. This act was first passed in the year 1974. It enables consumers…Read more
Home Ownership and Equity Protection Act – HOEPA
While granting particular consumer mortgage loans, some lenders engage in unscrupulous lending practices. This is known as predatory lending, which brings harm to legitimate lenders and consumers and adds to high foreclosure rates. Such practices can be prevented by applying several kinds of consumer protection laws. If, in any case, you are planning for refinancing…Read more
Truth in Lending Act Legislation
TITLE 15–COMMERCE AND TRADE CHAPTER 41–CONSUMER CREDIT PROTECTION SUBCHAPTER I–CONSUMER CREDIT COST DISCLOSURE Part A–General Provisions Sec. 1601. Congressional findings and declaration of purpose (a) Informed use of credit The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer…Read more
Fair Credit Billing Act – Overview
At some point of time, you might have received billing for a product you had returned or had never received. Your credit card company might have twice extracted money from you for the same item. These things are bound to annoy you a lot; but, they can be corrected too. The dispute settlement processes of…Read more
History of Truth in Lending Act – TILA
After several years of legislative study, research and struggle, the United States Congress and President Lyndon B. London agreed and signed the Consumer Credit Protection Act (CCPA). Truth in Lending Act (Title I) was a part of the CCPA. After the enactment of the law, this act was considered to be a milestone in legislation.…Read more
Truth in Lending Act – Overview
Truth in Lending Act (TILA) – An Overview In 1968, the Truth in Lending Act came into existence and was enacted by the Congress in the United States of America. A Federal law, Truth in Lending Act was especially crafted to protect customers in their dealings with creditors. The act states that certain related information…Read more
Right of Rescission Under TILA
The federal law offers a ‘cool-off’ period, if you are refinancing your purchase money loan with another lender or getting a home equity loan. This cool-off period is offered in the ‘right of rescission’. To put it simply, this credit law provides you with some extra time to help you decide on the agreement. Under…Read more
