Truth In Lending Act (TILA): Defined And Explained
Author:
Kevin GrahamNov 5, 2024
•5-minute read
You want to know the terms and how much it’s going to cost you before moving forward with a loan or line of credit. The Truth in Lending Act (TILA) is meant to protect borrowers by making sure that lenders properly disclose any information related to loan charges and fees. We’ll go over TILA and its relationship to other consumer protection rules in lending.
What Is The Truth In Lending Act (TILA)?
Originally passed in 1968, TILA aims to protect consumers from lending practices that could be considered unethical or unfair. The primary way this is achieved is by requiring lenders to list fees and charges completely so a borrower fully understands what they’ll be charged. It covers several types of loans, including mortgages and credit cards.