Things That You Should Know About the Truth in Lending Act

The Truth in Lending Act or TILA was originally passed by Congress in 1968 as part of the much larger Consumer Protection Act. It was designed as a way to protect consumers during credit transactions. It requires lenders to provide clear disclosure of any key terms in a lending agreement, including all the costs involved therein. The law was further reformed, and it was simplified in 1980 as part of the Depository Institutions Regulations and Monetary Control Act.

TILA is especially important in that it helps to protect consumers in credit transactions and leasing. Lending institutions can held liable under the Truth in Lending Act, regardless of the intent of the creditor or the nature of the violation. The Act is to be liberally construed in favor of consumers, and this creates less wiggle room for lenders if they fail to comply with any part of the act. (more…)