• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Todays Work At Home Mom

  • Home Business Ideas
    • Work at Home Jobs
      • 60+ Entry-Level Remote Jobs
      • Top 10 Best Work From Home Jobs
      • Work at Home Tips
    • Freelancing »
      • Freelance Writing
      • Virtual Assisting
    • Blogging
    • Blog Flipping
    • Affiliate Marketing
    • Craft Business
    • Direct Sales
    • Side Hustles
  • MomLife
    • Wellness
      • Motivation & Productivity
      • Beauty
    • Shopping
    • Home & Garden
      • Cleaning & Organizing
      • Decorating
    • Save Money
    • Fun & Leisure
      • Kid’s Crafts & Activities
    • Family & Pets
      • Pets
      • Marriage
      • Family Finances
      • Parenting
    • Recipes
  • The Mom Biz Hub
  • Blog
  • ABOUT
    • Contact Us
    • Advertise
    • We Want To Feature You!
Your Rights Under The Truth In Lending Act 1

Your Rights Under The Truth In Lending Act

August 1, 2019 Filed Under: Family Finances

Did you know you have three days to walk away from many loans, even after signing the agreement? Most people don’t, and this is just one of your rights under the Truth In Lending Act. You have a number of others too—check this out.

What Is “The Truth in Lending Act”?

Passed by Congress in 1968, the Truth in Lending Act (TILA) provides consumers with certain protections, while compelling the disclosure of credit terms and how interest rates work. The primary goal is to ensure consumers know the true cost of credit, thus ensuring fair treatment by lenders. Among the requirements, TILA imposes is the disclosure of credit terms in everyday, down-to-earth, easily understood language.

The Right of Rescission

Certain loans covered by TILA give consumers three days to reconsider their decisions to accept them. Additionally, lenders must provide Truth in Lending disclosures along with two copies of a notice explaining the right to rescind.

This means you can back out of a financing deal without forfeiting fees or down payments you may have proffered to qualify for the loan. This was put in place to give consumers time to reconsider in case high-pressure sales tactics are employed to coerce people into deals they didn’t really want to make.

According to Investopedia, the right of rescission affords borrowers the ability to cancel home equity loans or lines of credit with a new lender, or to cancel refinance transactions done with lenders other than their current mortgagee within three days of closing.

The right is provided on a no-questions-asked basis. Lenders must surrender claims to properties and refund all fees within 20 days of receiving notice of the exercising of the right of rescission. To cancel a loan, borrowers must do so before midnight of the third day following the completion of the refinancing.

Note the right of rescission applies only to the refinancing of a mortgage. It does not apply to the purchase of a new home.

TILA Disclosures

According to Credit Cards.com, the following disclosures regarding consumer credit must be made under TILA.

  • The APR, or the cost of the loan expressed as a yearly percentage rate.
  • The total amount of finance charges, or the cost of credit as a dollar amount. This refers to the total fees and interest the consumer will make over the life of the loan if all payments are made on time.
  • The financed amount, or the dollar amount of credit extended to the borrower.
  • Total of payments, or the sum of all payments made by the end of the loan.

Disclosures must also include how many payments you will make if the loan goes to term, the amount of your agreed-upon your monthly payment, how late fees are calculated, how much they will be and whether the agreement entails prepayment penalties.

TILA and Credit Cards

It’s important to note TILA does not regulate the charges that may be imposed for consumer credit. Rather, it requires standardized disclosure of costs and charges so consumers can shop for the best deals before accepting credit card offers.

Speaking of which, too many people accept credit cards solicitations that arrive in the mail without examining them to ensure they’re good ones. As a result, a lot of consumers find themselves locked into terms that can quickly escalate into unaffordability.

Hopefully, this article has educated you on your rights under the Truth In Lending Act. Knowledge is power, so use these tips to better your situation.

Filed Under: Family Finances

How much does it really cost to start a blog

Hoy much does it REALLY cost to start a blog?

20 an hour how much a year?

20 an hour is how much a year and can you live off it?

15 an hour is how much a year

$15 an hour is how much a year? And can you live off it comfortably?

$30 an hour is how much a year

$30 an hour is how much a year? And how you can live off it.

What is a lifestyle bog and how to create one

What is a lifestyle blog – the ultimate guide

Online Typing Jobs for Stay At Home Moms: no experience needed, get started today

The Best Online Typing Jobs for Stay-At-Home Moms!

Previous Post: « Unwind at Home with a Round of Roulette
Next Post: Coshocton, Ohio – Herbalife Distributors Giving Back To The Community »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

todays work at home mom jobs Ava

Today’s Work at Home Mom is a woman-owned business, dedicated to helping women fulfill their dreams of working at home. Read More…

Seriouly Milestones - Real Moments. Real Milestones

Her Hub Remote Jobs Hiring Now

Footer

todaysworkathomemom wh
Advertise
Blog
Join the TWAHM Community
Courses we love
Contact

Categories

Copyright © 2023 TodaysWorkAtHomeMom · All Rights Reserved.
Republishing of content without permission is prohibited. Privacy | Terms | Disclosure

DMCA.com Protection Status