What is the Truth in Lending Act?

The Truth in Lending Act is a federal law applicable in South Carolina and all other states. Its purpose is to protect consumers from deceptive practices by requiring lenders to provide transparent and accurate information regarding loan terms. The law requires lenders to provide written disclosure statements to borrowers on or before the time a loan is made. This disclosure must include information about the loan’s APR, finance charge, total amount financed, and any other fees associated with the loan. In addition to the disclosure statement, the Truth in Lending Act also requires lenders to provide borrowers a detailed explanation of their right to cancel certain types of consumer credit transactions. Finally, the law requires lenders to provide borrowers with a written notice of any changes to their loan terms prior to the loan being made. This protects borrowers from unexpected changes, such as an increase in loan fees or a longer repayment period. In short, the Truth in Lending Act ensures that borrowers are provided with accurate and transparent information about their loan terms and are aware of any changes prior to signing the financing agreement.

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What is the Truth in Lending Act?

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