If a creditor fails to comply with any requirements of the TILA, other than with the advertising provisions of chapter 3, it may be held liable to the consumer for actual damages and the cost of any legal action. Reasonable attorney’s fees may also be obtained in a successful action.
The creditor also may be held liable for either of the following:
- In an individual action, twice the amount of the finance charge involved, but not less than $100 or more than $1,000. Exception: in an individual action relating to a closed-end credit transaction secured by real property or a dwelling, twice the amount of the finance charge involved, but not less than $ 400 or greater than $ 4,000.[i]
- In a class action, such amount as the court may allow. The total amount of recovery, however, cannot be more than $500,000 or 1 percent of the creditor’s net worth, whichever is less.[ii]
Civil actions that may be brought against a creditor also may be maintained against any assignee of the creditor if the violation is apparent on the face of the disclosure statement or other documents assigned, except where the assignment was involuntary. A creditor who fails to comply with TILA’s requirements for high-cost mortgage loans may be held liable to the consumer for all finance charges and fees paid by the consumer. The consumer can assert all claims and defenses that the consumer could assert against the creditor against the subsequent assignee also, unless the assignee demonstrates that it could not reasonably have determined that the loan was subject to section 226.32.
[i] 15 USCS § 1640
[ii] 15 USCS § 1640