Truth in Lending Act (TILA)

The Truth in Lending Act (TILA) is a federal law designed to protect consumers in their credit transactions. It requires lenders to clearly disclose the terms and costs of loans, including interest rates and total costs, allowing borrowers to make informed decisions. TILA aims to prevent misleading practices and ensures that consumers understand their financial obligations before committing to a loan. This law covers various types of credit, such as mortgages, credit cards, and personal loans, promoting transparency and fostering trust in the lending process.