Truth in Lending Act

The Truth in Lending Act (TILA) prevents creditors in a wide range of consumer finance transactions from withholding important information from consumers regarding financing costs. The purpose is to protect consumers by providing full disclosure regarding their credit options, lease terms, billing, etc.

Kakalec & Schlanger, LLP has deep experience litigating under TILA at both the trial court and appellate level. Although much of our TILA work is in the auto fraud context, we have also achieved notable results with regard to predatory home loans.

In one particularly notable case, US Bank v. Pia, we litigated on behalf of a couple of facing foreclosure through two appeals, as well as post judgment discovery disputes. After over seven years of litigation, we received decisions enforcing the consumers’ right to rescind their loan and have repayment of the principal only structured as modified, interest free mortgage payable over roughly 20 years. In the first decision in New York’s state courts on the issue, the trial court and then the Second Department ruled that the consumers were entitled to their attorneys’ fees. The trial court subsequently entered judgment in favor of the consumers and found the bank in contempt for failing to turn over information regarding its bank accounts. The case subsequently settled.