Truth-in-Lending Act

Also found in: Legal.

Consumer Credit Protection Act of 1968

Legislation in the United States requiring lenders to disclose to potential borrowers all terms of loans, including, but not limited to, the interest rates, applicable fees, and the length of loans. The Act also allows consumers to cancel some credit transactions that require a lien to be placed on the consumer's primary residence. For the most part, the Act does not place limits on the fees lenders may charge, but instead requires transparency. It is also called the Truth in Lending Act.

Truth-in-Lending Act.

The Truth-in-Lending Act requires every lender to provide a complete and clear disclosure of the key terms of any lending or leasing arrangement, plus a statement of all costs, before the agreement is finalized.

The statement must include the finance charges stated in dollars and as an annual percentage rate (APR).

For most loans, it must also include the total of the principal amount being financed, all the interest, fees, service charges, points, credit-related insurance premiums, payment due date and terms, and any other charges.

The consumer lending section of the Act, which was first passed in 1968 and then simplified and reformed in 1980, is also known as Regulation Z. The consumer leasing section is known as Regulation M.

References in periodicals archive ?
The most comprehensive and accurate solution available, the Mavent Expert System reviews loans for compliance against nearly 300 legislative acts, 200 license types, and the rules and regulations of over 60 regulatory authorities, and includes aspects of Truth-In-Lending Act (TILA), HOEPA, state and local high cost calculations, general state consumer credit laws, broker and lender licensing, an accurate Fannie Mae points and fees test, HMDA and OFAC.
He concentrates in consumer financial services litigation, including class actions brought under various state unfair and deceptive practices acts and federal statutes, such as the Truth-in-Lending Act, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.
Courses are accredited in 25 states and include required topics such as The Real Estate Settlement Procedures Act , The Federal Truth-In-Lending Act, The Equal Opportunity and Fair Credit Acts, Recent Developments in Federal Mortgage Regulation, Ethical Principles & Practices in Mortgage Lending, and State Law Supplements.
Founded in conjunction with the Truth-in-Lending act in the late 1960s, their client list has grown to include most of the major lenders, credit insurance companies, and loan origination software providers in the United States.