Truth in Lending Act Claims In Automobile Sales

TRUTH IN LENDING ACT CLAIMS IN AUTOMOBILE SALES

Federal Law-Truth in Lending Act (TILA) Claims Against New and Used Automobile Dealers for the Purchase of New or Used Automobiles that are Purchased with a loan.

Do I have a TILA claim?

A consumer who does not have enough cash to buy an automobile will finance the purchase of the automobile.  How much the automobile will cost you will be disclosed in financing documents that are regulated by TILA.

The automobile dealer, in most cases initially offers the credit to the consumer and acts as the lender, and is required to give the TILA disclosures, and then immediately sells the automobile loan to a bank or credit union to whom the consumer will be making their payments.

TILA is Federal Law that protects consumers by requiring full disclosure of the cost of credit.  TILA requires among other things, complete disclosure of the interest rate, number of payments, amount financed, amount paid to others, and the name and address of the creditor.  Improper disclosure can lead to a TILA claim.  One of the purposes of TILA is to allow consumers to shop around for the best financing deal by comparing the interest rate and other terms.

TILA requires disclosure of the following information:

  • amount of the loan;
  • term of the loan;
  • annual interest rate;
  • total number of payments
  • amount of each payment
  • due dates of each payment

An automobile dealer may not have given you with the proper TILA disclosures.  Let us review your documents.