What constitutes a mistake in TILA compliance?

Failing to disclose required information is indeed a mistake in TILA compliance. The Truth in Lending Act (TILA) mandates that lenders provide borrowers with clear, accurate, and timely information regarding the terms and costs associated with their loans. This includes disclosures such as the annual percentage rate (APR), finance charges, and the total cost of the loan over its term. Non-compliance in these areas can mislead consumers and prevent them from making informed decisions, which is at the heart of TILA’s purpose.

While providing additional loan features, offering competitive interest rates, and providing information about loan benefits might be good practices for lenders, they do not directly pertain to the core compliance obligations set forth by TILA. The focus of TILA is on ensuring transparency and full disclosure; hence, any failure in these required disclosures is a significant compliance issue.