The Truth in Lending Act

The Truth in Lending Act (TILA) is a U.S. law that requires lenders to disclose clear and accurate information about the costs of borrowing money. This includes details like interest rates, annual percentage rates (APR), and total payments, so consumers can compare loans fairly. TILA aims to protect borrowers from hidden fees and deceptive practices, ensuring they understand the true cost of credit before committing. It applies to various types of loans, including credit cards, mortgages, and personal loans, fostering transparency and helping consumers make informed financial decisions.