Question

What are the two changes incorporated in the Truth-in-Lending Simplification Act that makes it different from the Truth-in-Lending Act?

Answer 1

Answer-

The two changes incorporated in the Truth-in-Lending Simplification Act that makes it different from the Truth-in-Lending Act are

1) The reduction in the length and complexity of required disclosures especially in the closed end credit in the Truth-in-Lending Simplification Act compared to the Truth-in-Lending Act. It was recognzed that the excessive technical nature of the ddisclosure rules was the primary cause of flood of litigation and loss of consumer understanding of essential credit cost information.

2) Changes to make compliance easier for creditors. A reduction in the niumber of disclsures and requiring the federal reserve promulgate form which ensures that the coompliance is filed properly.

3) Changes to clarify legal issues. A clarification concerning creditor responsible for disclosure in transactions involving morethan one institution and cassification concerning adequate diisclosure of security interests.