Truth in Lending: 2.8.8.3 Are Banks “Creditors” When They Make Overdraft Loans?
As discussed in § 2.6, supra, in order to count as creditors under TILA, lenders must regularly extend consumer credit subject to a finance charge or payable by written agreement in more than four installments and be the entity to whom the note is initially payable. Depository institutions that make overdraft loans regularly extend consumer credit, and the overdraft loan obligations are payable to them.