McCoy

DISCUSSION

Federal TILA Claim

[1] Congress enacted TILA to “assure a meaningful disclo- sure of credit terms so that the consumer will be able to com- pare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the con- sumer against inaccurate and unfair credit billing and credit card practices.” 15 U.S.C. § 1601(a). Regulation Z, adopted by the Federal Reserve Board to implement TILA, addresses when and how notice of changes in terms must be given:

Written notice required. Whenever any term required to be disclosed under § 226.6 is changed or the required minimum periodic payment is increased, the creditor shall mail or deliver written notice of the change to each consumer who may be affected. The notice shall be mailed or delivered at least 15 days prior to the effective date of the change. The 15-day timing requirement does not apply if the change has been agreed to by the consumer, or if a periodic rate or other finance charge is increased because of the consumer’s delinquency or default; the notice shall be given, however, before the effective date of the change.

12 C.F.R. § 226.9(c)(1). Section 226.6 requires that a…