What is the Truth in Lending Act?

The Truth in Lending Act (TILA) is a federal law that was passed in 1968 which regulates the credit industry. It was enacted to protect customers from unfair credit practices and to ensure that credit terms are disclosed in a clear and consistent manner. In Oregon, the TILA requires creditors to provide borrowers with a full disclosure statement at the time of loan origination. This statement must include the name and address of the lender, the total loan amount, the fees, the interest rate, and the repayment terms. The TILA also requires lenders to provide consumers with an annual percentage rate (APR) for all loan products. The APR is the annual cost of the loan, expressed as a percentage of the total loan amount. This allows consumers to compare loan products and make a more informed choice. The TILA also provides consumers with certain protections. These include a right to rescind the agreement within three days, a right to dispute any incorrect or ambiguous statements, and a right to a refund for any overpayments. The Truth in Lending Act has had a significant impact in Oregon. By ensuring credit terms are disclosed in a clear way and that consumers have certain protections, the TILA helps to keep the banking industry in Oregon fair and accountable.

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What is the Truth in Lending Act?

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