Truth in Lending Reform Act

Truth in Lending Reform Act - Amends the Truth in Lending Act to make State law determinitive in applying the terms of such Act and regulations adopted by the Board of Governors of the Federal Reserve System.

Eliminates: (1) credit transactions for agricultural purposes; and (2) mobile home purchases costing less than $25,000 from coverage under such Act.

Directs the Board of Governors of the Federal Reserve System to issue model forms and clauses, for use in common transactions, describing the transaction in understandable language. Exempts creditors who use such forms from liability under such Act.

Establishes guidelines for restitution by enforcement agencies which discover understatements by creditors of annual percentage rates or finance charges.

Enumerates adjustments which must be made by a creditor if disclosures are not made. States that compliance with such requirements shall relieve a creditor from civil liability. Prohibits any Federal agency from issuing regulations applying or implementing the administrative enforcement provisions of the Truth in Lending Act.

Specifies areas of regulation by the States and their political subdivisions which are superseded by such Act, without limiting the scope of Federal preemption.

Entitles any person whose principal residence is a mobile home to rescind any transaction which would result in a lien on such residence, within three days after purchase or the time of receiving notice of his right to do so, whichever is later. Makes other changes to the right of rescission of consumers including: (1) rendering void any security interest of the creditor; (2) requiring return of any money received by the creditor coupled with the simultaneous tender of any property to the creditor by the consumer; (3) vesting ownership of any property in the consumer which the creditor has not repossessed within 30 days; and (4) empowering any court to suspend or terminate a creditor's responsibilities if a consumer fails to perform in accordance with this Act. Exempts specified creditors whose activities are regulated by Federal agencies from provisions of the Act relating to rescission.

Revises disclosure requirements for "open-end" and "closed-end" transactions.

Sets forth the liability of creditors and assignees for failure to disclose or inaccurate disclosure of information required by such Act. Removes the existing limitation which requires at least $100 in actual damages for an individual to maintain suit. Requires the courts to entertain only one class action involving a single course of conduct by any creditor. Limits the liability of such a creditor to the recovery in such suit.

Limits the liability of a credit cardholder for the unauthorized use of a credit card.

Reduces disclosure requirements for credit advertising.

Revises the definition of the term "billing error" under such Act.

Exempts any creditor participating in a credit program administered, insured, or guaranteed by any agency of the United States from civil or criminal penalties under this Act where the violation results from the use of an instrument required by such agency.

Requires creditors to respond to oral inquiries about the cost of credit only in terms of annual percentage rate unless the finance charge consists primarily of simple interest.