Two Important Facts about the Truth in Lending Act
Consumer credit has made buying a house, car, or another highly valued asset more affordable and accessible to every American. Credit is a useful tool, but you are taking a risk each time you take out a loan or credit card. In fact, the mismanagement of credit and subsequent loan crisis was a primary factor in the 2008 financial collapse. Since then, numerous regulations have been put in place by the federal government to protect consumers and prevent predatory loan practices.
Regulation certainly increased after the recession, but consumer protections have been in place for decades in the United States. The Truth in Lending Act, passed in 1968, is a federal law that aims to promote informed use of consumer credit. All forms of credit, from motor vehicle loans to credit cards, are subject to the regulations introduced in the Truth in Lending Act. Two things you should know about your protections under the TILA are:
- Prior to the TILA, advertised interest rates were often misleading. Auto loans, one of the most common types of loans in the United States, affect millions of consumers and are a leading cause of financial pressure. Using predatory tactics, car salespeople and manufacturers trap million of Americans in payment plans they cannot afford. Luckily, the federal regulations introduced in the Truth in Lending Act demand increased transparency and fair loan practices.
- Credit card practices are also a primary target of TILA regulation. You are protected from unfair billing practices and are allowed to back out of any loan within three days of the agreement without losing any money. In addition, credit card companies are required to provide you with all the appropriate information on interest rates and payments prior to the beginning of the loan process.
Contact a North Carolina Bankruptcy Attorney Today
When it comes to credit, the experienced legal team at Bradford Law Offices, PLLC understands that sometimes you do not know exactly what you are getting into when you sign paperwork. Through years of defending our clients and protecting them from large corporations and malicious credit agencies, we have acquired the skills necessary to get results. No matter if your case is large or small, Bradford Law Offices, PLLC can help see you through the process. Contact us today at (919) 758-8879 for a free consultation with a skilled attorney.