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#2246590 - 12/16/20 02:49 PM TILA exempt loans number of installments
newyork Offline
Gold Star
Joined: Aug 2008
Posts: 447
Does TILA have an exemption to consumer loans with 2 payment installments or less?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2246595 - 12/16/20 03:24 PM Re: TILA exempt loans number of installments newyork
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
1026.1(c) Coverage. (1) In general, this part applies to each individual or business that offers or extends credit, other than a person excluded from coverage of this part by section 1029 of the Consumer Financial Protection Act of 2010, Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376, when four conditions are met:

(i) The credit is offered or extended to consumers;

(ii) The offering or extension of credit is done regularly;

(iii) The credit is subject to a finance charge or is payable by a written agreement in more than four installments; and

(iv) The credit is primarily for personal, family, or household purposes.
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#2246596 - 12/16/20 03:29 PM Re: TILA exempt loans number of installments newyork
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Not exactly.

It covers extensions of credit that meet these four criteria:

(i) The credit is offered or extended to consumers;

(ii) The offering or extension of credit is done regularly;

(iii) The credit is subject to a finance charge or is payable by a written agreement in more than four installments; and

(iv) The credit is primarily for personal, family, or household purposes.

To be exempt, an extension of consumer credit of that's repayable by a written agreement in four or fewer installments would also have to be free of any finance charge.
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John S. Burnett
BankersOnline.com
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