$1000 Cap On Damages For TILA Violations
Does the 1995 amendment to the Truth In Lending Act lift the $1000 cap for statutory damages for TILA violations involving loans secured by personal (not real) property?
No, the Court answered in a rare 9-0 decision. So, for now, the cap remains in place.
Mostly based on its close reading of the amendment, the Court concluded that while Congress intended to raise the maximum statutory damages for TILA violations on loans secured by real property, it did not intend to increase the $1000 cap regarding loans secured by personal property. In parsing the statute, the Court noted that Congress ordinarily adheres to an "hierarchical scheme in subdividing statutory sections" and that, in the hierarchy, a "subparagraph" is quite different from a "clause."
For additional information on this topic or other areas of law affecting financial institutions, please contact one of the following attorneys:
Robert J. Stumpf, Jr., San Francisco 415.774.3288 rstumpf@sheppardmullin.com
Edward D. Vogel, San Diego 619.338.6529evogel@sheppardmullin.com
John R. Pennington, Los Angeles 213.620.1780 jpennington@sheppardmullin.com
Andrew J. Guilford, Orange County 714.513.5100 aguilford@sheppardmullin.com