Truth in lending law

Truth in lending law

Legislation governing the granting of credit, that requires lenders to disclose the true cost of loans and the actual interest rates and terms of the loans in a manner that is easily understood.

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.
References in periodicals archive ?
Although under current Truth in Lending law consumers are not entitled to get estimated disclosures in refinancings of home loans within three days after application, they do get more precise credit disclosures before consummation.
In March 1989, the Fair Credit and Charge Card Disclosure Act amendments to the Truth in Lending law went into effect.