Truth in Lending: 11.7.3.3 Interpreting Ambiguous Statutory Language Regarding the Cap
Consumers have argued that the statute’s language indicates that the cap does not apply to certain types of credit, and creditors have argued that the court has discretion to award an amount less than the cap for closed-end credit secured by real property, even when twice the finance charge exceeds the cap. These arguments were largely resolved by the 2004 Supreme Court case Koons Buick Pontiac GMC, Inc. v. Nigh.836