More states have followed California in enacting consumer-like disclosure laws covering lending to small businesses. While requirements are similar to the federal Truth in Lending Act, there are important differences concerning the terms and conditions that must be disclosed. Plus, the CFPB has issued a final determination that these state commercial lending disclosure laws are not pre-empted by TILA.  Financial institutions should establish state-specific policies, procedures, processes, and controls to ensure compliance to avoid costly violations.

Read more about New Commercial Finance Disclosure Laws: More States Mandate TILA-Like Disclosures For Small Business (capco.com)

 

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