If you have obtained credit for personal, family or household use, chances are your lender was required to give you Truth in Lending Act (“TILA”) disclosures. Failure to comply with TILA subjects a lender (or seller) to civil damages and potential class action liability. Regulation Z of the TILA prescribes uniform methods of computing the cost of credit, disclosure of credit terms, and procedures for resolving billing errors on certain credit accounts. Regulation Z was written to promote the informed use of consumer credit by consumers, and applies to loans for personal, family or household purposes.

The major provisions of the regulation require lenders to:

• Provide borrowers with meaningful, written information on the cost of credit (including financial charges and the annual percentage rate (APR)
• Respond to consumer complaints of billing errors on certain credit accounts within a specific period
• Identify credit transactions on periodic statements of open-end credit accounts
• Provide certain rights regarding credit cards
• Inform customers of the right to rescind certain real property transactions within a specific period of time
• Comply with special requirements when advertising credit