Truth in Lending Act

The Truth in Lending Act (TILA) is a federal law designed to protect consumers by requiring lenders to clearly disclose important loan details before agreements are signed. This includes the annual percentage rate (APR), total finance charges, monthly payments, and loan terms. The goal is to help consumers compare different loan offers, understand the true cost of borrowing, and make informed financial decisions. TILA also gives borrowers certain rights, like the ability to cancel some loans within a specific period and protection against deceptive lending practices.