1. a. How did Chase violate Regulation Z and the TILA?
b. According to this decision, what is a “clear and conspicuous” disclosure?
2. Green Tree Financial financed Randolph’s mobile home purchase. Randolph sued, claiming that Green Tree’s financing document contained an arbitration clause that violated TILA because it did not provide the same level of protection as TILA accords. If the arbitration clause provided lesser protection than that provided for by TILA, as Randolph claimed, should the arbitration go forward? Explain.
3. Sarah Hamm sued Ameriquest Mortgage Company claiming a violation of the Truth in Lending Act (TILA). Hamm borrowed money secured by a 30-year mortgage from Ameriquest. She signed a “Disclosure Statement” specifying, among other things, that she was responsible for 359 payments at a specified amount and one payment for the last month of a slightly smaller amount. The Statement did not, however, explicitly specify, as required by the TILA, the total payments due (360). Was the TILA violated? Explain.
We must decide whether a credit card company violates the Truth in Lending Act when it fails to disclose potential risk factors that allow it to raise a cardholder’s Annual Per-centage Rate.