Sterling Jewelers Fake Credit Cards
You may have claims if Sterling Jewelers (Kay Jewelers or Jared Galeria) enrolled you for a credit card or credit product without consent.
Truth in Lending Act
The Truth in Lending Act (TILA) is a federal law that regulates consumer loans. It was passed to ensure consumers understand the cost of their loan. It also provides special protections for mortgages, credit cards, and other types of credit.
When companies violate TILA, they are liable for various types of damages.
If you think your rights under TILA were violated, contact us for help. To get a free case review from our consumer loan attorney, complete our contact form.
What loan disclosures does TILA require?
The main purpose of the TILA is to help consumers understand the cost of financing. To do this, TILA requires cost disclosures when applying for a loan. The most important disclosures include:
- Finance Charge: the "finance charge" is the total cost of taking out your loan. It includes the total amount of interest you'll pay over the life of the loan, and things like service charges and other amounts that you must pay to take out the loan.
- Annual Percentage Rate (APR): the "APR" is the cost or your loan expressed at an annual rate. Sometimes, the APR is equal to your interest rate. Other times, it is not, especially if there are fees you must pay to get a loan, or if your interest rate is determined using a method other than simple interest, like a discount or add-on rate.
- The Amount Financed: this is a disclosure required for personal loans, auto-loans, and other types of closed-end loans. It's basically the amount that you're borrowing.
What protections does TILA provide for mortgages?
In addition to requiring cost disclosures, TILA provides substantive protections for mortgage loans. Here are some of them:
- Mortgage servicers must send periodic mortgage statements and notices when payment terms change.
- Pre-payment penalties are prohibited.
- Mortgage servicers must credit payments promptly
- Mortgage originators must make ability to pay determinations.
What protections does TILA provide for credit cards?
In addition to requiring cost disclosures, TILA provides substantive protections for credit cards. Here are some of them:
- You have the right to dispute credit card billing errors, and credit card companies must investigate and fix errors.
- Credit card companies must send monthly statements.
- Credit card companies must promptly and fairly credit payments.
- Credit card companies must honor promotional rates at least for six months.
- Credit card companies must give notice for interest rate increases on outstanding balances.
What happens when companies violate TILA?
When companies violate TILA, they may be liable for actual damages and statutory damages. Actual damages provide compensation for monetary loss, anxiety, and stress caused by TILA violations. Statutory damages are award in various amounts depending on the violation at issue and the type of credit account you have.
Visit our consumer loan page to see if we can help.
Hire us to help!
If you’re having problems with a mortgage, credit card, personal loan, auto loan, or some other consumer loan, contact us for help. To get a free case review from our consumer loan attorney, complete our contact form.
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