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.
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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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Because of the controversial nature of this product, the original Truth in Lending Act in 1968 contained a special disclosure for credit insurance that remains unchanged today.
The introductory question regarding this topic asked, "The federal Truth in Lending Act now requires that lenders and creditors give consumers a written statement of credit costs, including costs of credit insurance.
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 published on November 21, 2000, its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act (Regulation Z) for mortgage loans that bear rates or fees above a certain amount.
The Federal Reserve Board published on September 28, 2000, a final rule amending Regulation Z, which implements the Truth in Lending Act, to revise the disclosure requirements for credit and charge card solicitations and applications.
The Truth in Lending Act (TILA) is intended to promote the informed use of consumer credit, primarily through disclosure of the costs and terms of loans, although it also contains some substantive restrictions.