What are the penalties for violating the Truth in Lending Act?

The Truth in Lending Act (TILA) is a federal law that requires lenders to clearly and accurately disclose credit terms to consumers. In Maryland, violating the TILA carries a variety of penalties. First, an individual or business found to have violated the TILA may be fined up to $5,000 for each violation. The court may also require that any person who violates the TILA provide restitution to anyone who suffered a financial loss due to the violation. Second, if the violation was intentional, both criminal and civil penalties may be imposed. Individuals found guilty of a criminal TILA violation can be fined up to $10,000 for each violation and may be imprisoned for up to one year. Third, the court may also issue injunctions to prevent the continuance of the violation. An injunction is a court order requiring the person to stop the violation and refrain from committing future violations. Fourth, the Maryland Department of Labor, Licensing, and Regulation may take administrative action against anyone who violates the TILA. This may include suspending or revoking a license or imposing fines and civil penalties. Finally, the Federal Trade Commission (FTC) has the authority to seek civil penalties for violations of the TILA. The FTC can assess civil penalties of up to $40,654 for each violation. Violating the TILA has serious consequences. For this reason, it is important that individuals and businesses understand their obligations and comply with the law.

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