TILA (Truth in Lending Act)

The Truth in Lending Act (TILA) is a U.S. law designed to protect consumers in credit transactions. It requires lenders to clearly disclose the terms and costs of loans, including interest rates, fees, and payment schedules. This transparency helps borrowers understand their financial obligations and compare different loan offers. TILA applies to various types of credit, including mortgages and credit cards, and aims to prevent deceptive lending practices, ensuring consumers make informed decisions about borrowing money.