Legal Memorandum: Application of Truth in Lending Act (TILA)

Issue: Does the federal Truth in Lending Act (TILA) apply to both corporations and natural persons?

The law is not so simplistic as to restrict the federal Truth in Lending Act (TILA) to loans involving natural persons. See Amonette v. IndyMac Bank, FSB 515 F.Supp.2d 1176, 1180-83 (D. Haw. 2007) TA l "Amonette v. IndyMac Bank, FSB 515 F.Supp.2d 1176 (D.Hawaii 2007)" s "Amonette v. IndyMac Bank, (D.Hawaii 2007)" c 1  (with respect to construing and applying TILA, “what might appear to be ‘plain’ here is not necessarily so.  Plain meaning, like beauty, is sometimes in the eye of the beholder.”)

In interpreting consumer credit protection statutes, courts apply the substance-over-form doctrine and take pains to ensure that the commercial realities of the situation are not ignored.  See, e.g. Cole v. U.S. Capital 389 F.3d 719, 727 (7th Cir. 2004) TA l "Cole v. U.S. Capital 389 F.3d 719 (7th Cir. 2004)" s "Cole v. U.S. Capital (7th Cir. 2004)" c 1  ( to define terms in a consumer credit protection statute in a way that “elevates form over substance, ‘exalt[s] artifice above reality and … deprive[s] the statutory provision in question of all serious purpose.'”); Meyers v. Clearview Dodge Sales, Inc., 539 F.2d 511, 515 (5th Cir. 1976) TA l "Meyers v. Clearview Dodge Sales, Inc., 539 F.2d 511 (5th Cir.1976)" s "Meyers v. Clearview Dodge Sales, Inc. (5th Cir.1976)" c 1  (“[A]ppellant’s argument elevates form over substance in an effort to avoid the realities of the credit transaction.”); Adiel v. Chase Fed. Sav. & […]