ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Buying a New Car

What if the creditor of my car loan does not comply with Truth in Lending Act?

If a creditor fails to disclose timely information as required under Truth in Lending Act (TILA), gives you inaccurate information, or breaches the TILA in some other way, you should inform the proper federal enforcement agency. You may also bring a lawsuit for actual damages (any money loss you suffer). You may also sue for the greater of twice the finance charge or $100. However, the most you can recover, even if the finance charge is high, is $1,000. If you win the lawsuit, the law also entitles you to court costs and lawyer's fees.

Under some state laws, a violation of TILA is an unfair or deceptive act or practice, and other remedies may be available. Chapter 7, "Consumer Credit," provides detailed information on TILA.