What is the maximum penalty for a knowing violation of TILA?

The maximum penalty for a knowing violation of the Truth in Lending Act (TILA) is indeed $5,000 per violation and/or up to one year in prison. This reflects the serious nature of the violations associated with TILA, which are designed to protect consumers by ensuring they have the necessary information to make informed decisions regarding credit and lending.

TILA requires lenders to disclose important information about the terms and conditions of credit, including interest rates and fees. When these requirements are knowingly disregarded, the law imposes significant penalties to deter such conduct and uphold the integrity of consumer lending practices. The combination of a monetary penalty and potential imprisonment underscores the importance of compliance with these regulations.

The other options suggest lower penalties or no penalties at all, which do not align with the seriousness of TILA violations and could undermine consumer protections in the lending market.