Truth in Lending Act (TILA)

The Truth in Lending Act (TILA) is a federal law that requires lenders to disclose certain information to consumers about loans and credit. The law was enacted in 1968 to protect consumers from unfair and deceptive lending practices.

TILA applies to most types of consumer loans, including mortgages, auto loans, credit cards, and personal loans. The law requires lenders to provide consumers with a Loan Disclosure Statement (also known as a Truth in Lending Disclosure) that includes information such as the loan's interest rate, fees, and other costs. The statement must be provided to consumers before they sign a loan agreement.

TILA also prohibits lenders from making certain unfair or deceptive practices, such as charging excessive interest rates or fees. The law also gives consumers the right to cancel certain types of loans within a certain period of time, known as the right of rescission.

The Truth in Lending Act is an important law that helps to protect consumers from unfair and deceptive lending practices. The law provides consumers with important information about loans and credit, and it gives them the right to cancel certain types of loans. If you are considering taking out a loan, it is important to be familiar with the Truth in Lending Act. This will help you to make informed decisions about your loans and credit.

Here are some additional details about the Truth in Lending Act:

* The law is enforced by the Consumer Financial Protection Bureau (CFPB).
* The law applies to both creditors and debt collectors.
* Consumers can file a complaint with the CFPB if they believe that they have been treated unfairly by a creditor or debt collector.
* The CFPB has a website with more information about the Truth in Lending Act.