Truth in Lending Act

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Related to Truth in Lending Act: Fair Credit Reporting Act

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

Title I of the Consumer Credit Protection Act.It is a federal law that requires lenders to make certain disclosures to potential borrowers within 3 days after receipt of a written loan application.A final disclosure statement is provided at the time of loan closing.The disclosure is required to be in a specific format and must include the following information:

1. Name and address of creditor
2. Amount financed
3. Itemization of amount financed (optional, if a good-faith estimate is provided)
4. Finance charge
5. Annual percentage rate (APR)
6. Variable-rate information
7. Payment schedule
8. Total of payments
9. Demand feature
10. Total sales price
11. Prepayment policy
12. Late payment policy
13. Security interest
14. Insurance requirements
15. Certain security interest charges
16. Contract reference
17. Assumption policy
18. Required deposit information

References in periodicals archive ?
The Dodd-Frank Act generally transferred rulemaking authority under the Truth in Lending Act and the Consumer Leasing Act to the CFPB.
The Truth in Lending Act (TILA) is the primary federal law that governs credit cards.
The Fair Credit and Charge Card Disclosure Act of 1988 amended the Truth in Lending Act to require that the APR for credit card purchases and certain other costs be disclosed in direct mail and other solicitations and applications to open credit and charge card accounts.
The Federal Reserve Board on November 3, 1999, published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear fees above a certain amount.
Consumers' liability under the Truth in Lending Act (TILA) for the unauthorized use of a credit card is no more than $50; for debit cards, the potential loss under the Electronic Fund Transfer Act (EFTA) can be much higher.
The Truth in Lending Act and the Board's Regulation Z, which implements TILA, currently have limited disclosure requirements about the effect of the credit transaction on consumers' income tax liability.
1601-1693r), in regard to the Truth in Lending Act, the Consumer Leasing Act, the Equal Credit Opportunity Act, the Electronic Fund Transfer Act, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act;