Which of the following is true about the penalties and remedies under the Truth-in-Lending Act?
A) There are no civil penalties for violation of Truth-in-Lending.
B) The criminal liability provisions make creditors liable to debtors for an amount equal to twice the finance charge.
C) Creditors may avoid liability in the event they make an error, provided they notify the debtor within 30 days after discovering the error.
D) If creditors avoid liability in making an error by notifying the debtor within 60 days after discovering and correcting the error, the law allows for corrections in favor of the debtor only.
E) Creditors are, in certain cases, allowed to collect finance charges in excess of those actually disclosed.

Question

Quizplus · Accepted Answer

There are both civil and criminal penalties for violation of Truth-in-Lending. The civil liability provisions make creditors liable to debtors for an amount equal to twice the finance charge. Creditors may avoid liability in the event they make an error, provided they notify the debtor within 60 days after discovering the error and also correct the error. In this connection, the law allows for corrections in favor of the debtor only. Creditors cannot collect finance charges in excess of those actually disclosed.

Which of the Following Is True About the Penalties and Remedies