Showing papers in "Notre Dame Law Review in 1972"

Class Actions under the Truth-In-Lending Act

Abstract: The Truth in Lending Act' is a response by Congress to the many and varied methods used by creditors to state the interest rates on consumer loans.2 The purpose of the Act is to prescribe a uniform method of stating the interest rate on consumer loans and thereby enable consumers to compare more easily the various credit terms and to avoid the uninformed use of credit.3 While the purpose of the Act was clear, the means of enforcing it were not so obvious. The Senate version of the Truth in Lending Act relied on private enforcement to effectuate the terms of the Act.4 It provided for jurisdiction in the federal district courts without regard to a minimum jurisdictional amount5 and also provided an individual with incentive to litigate: A successful plaintiff would recover statutory damages of twice the amount of the finance charge imposed in the transaction, with a minimum of $100, plus reasonable attorney's fees and' court costs.6 The House amended the Senate bill by providing for enforcement by the Federal Trade Commission (FTC) and other agencies7 largely because it feared that the small purchaser and the poor would not be able to adequately protect their rights and enforce the Act.8 It also retained the $100 minimum statutory damages provision, as an incentive for enforcement by private litigation. The Truth in Lending Act thus contained both administrative and private enforce-