Final answer:
If a creditor fails to provide an estimate for a charge that is later billed, the borrower may dispute the charge and seek legal action if necessary. To reassure a bank of their creditworthiness despite imperfect information, a borrower can offer collateral, demonstrate stable income, and showcase a strong credit history.
Step-by-step explanation:
If a creditor does not provide an estimate of a particular charge that is later charged, there could be a violation of lending laws, such as the Truth in Lending Act (TILA), which requires creditors to clearly disclose all charges and terms to the borrower. Depending on the jurisdiction, there could be different implications and required actions. Typically, the borrower would be within their rights to dispute the charge with the creditor, seek clarification and, if necessary, pursue legal redress to ensure fair lending practices are followed.
Ways to Reassure a Bank for a Loan
Someone looking for a loan can reassure a bank through several methods:
- Providing collateral: offering assets as security can reduce the bank's risk.
- Show stable employment and income history: this demonstrates ability to repay the loan.
- Having a strong credit history: indicates a positive track record of managing credit.
By providing clear evidence of their creditworthiness, a borrower can mitigate the bank's concerns about imperfect information.