What is the individual civil penalty range for violating TILA/Reg. Z?

The Truth in Lending Act (TILA), along with Regulation Z, is designed to protect consumers in credit transactions by ensuring that they receive clear and comprehensible information about the terms of their loans. When violations of TILA occur, the law imposes civil penalties to deter such misconduct and encourage compliance among lending institutions.

In terms of individual civil penalties, TILA establishes a specific range for violations that can be imposed on lenders. The correct range for individual civil penalties under TILA is $400 to $4,000. This range is in place per violation, allowing for significant penalties that can accumulate if multiple violations occur. This serves as a strong incentive for lenders to follow the guidelines set by TILA, ensuring that consumers are educated about the costs and terms of their loans and are not subjected to deceptive practices.

The selected response accurately reflects the framework established by TILA, underlining the importance of compliance and the potential financial repercussions for those who fail to adhere to the regulations.