The Truth in Lending Act (TILA) is a federal law enacted in 1968 to promote informed consumer credit decisions. It requires lenders to disclose key terms and costs associated with loans, including interest rates, fees, and the total cost of borrowing. This transparency helps consumers compare different credit offers and understand their financial obligations.
TILA applies to various types of credit, including mortgages, credit cards, and personal loans. It aims to protect consumers from deceptive lending practices and ensure they have the necessary information to make informed choices about their finances. Compliance is monitored by the Consumer Financial Protection Bureau (CFPB).