What is the Truth in Lending Act?

The Truth in Lending Act (TILA) is a federal law that was enacted in 1968 to protect consumers from unfair and abusive credit practices. It applies to most types of consumer credit, including credit cards, mortgages, auto loans, and home equity loans. The law requires lenders to disclose terms and conditions of credit agreements to consumers in a clear and concise manner. This includes information such as the cost of credit, any fees, and the annual percentage rate (APR). TILA also provides consumers with certain rights to dispute billing errors and cancel certain types of credit agreements without penalty. This includes the right to dispute charges and billing errors with the credit card issuer. When a dispute is made, the credit card issuer must investigate and provide a resolution within a certain time period. The Truth in Lending Act is an important consumer protection law that promotes fairer and safer credit practices in Washington and throughout the United States. It allows consumers to understand what they are getting into when they enter into a credit agreement, and allows them to dispute billing errors with the credit card issuer.

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What is the Truth in Lending Act?

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