Franklin Savings Bank v. Bordick
The Truth in Lending Act (TILA) provides consumers a variety of protections when they take out a loan. TILA generally applies to consumer loans, i.e., loans that are primarily for a personal, family, or household purpose, but not to loans made for a commercial purpose. Maine law fully incorporates TILA.
The Bureau and the State of Maine filed an amicus brief arguing that determining whether a loan is covered by TILA requires assessing the borrower’s primary purpose in entering into the transaction. This inquiry looks to substance over form and is not controlled by language in the loan documents. The brief argues that the statutory text, judicial precedent, and agency guidance all support this approach.