What is the Truth in Lending Act?
The Truth in Lending Act is a federal law that protects consumers from deceptive lending practices regarding credit cards and other forms of credit. This law was enacted in 1968 to ensure that consumers are given clear and accurate information regarding the cost and terms of credit and to protect them against unfair and deceptive practices such as hidden fees and sudden interest rate increases. In Hawaii, the Truth in Lending Act requires credit card companies to provide customers with a written disclosure of the terms and conditions of their credit agreement. This disclosure must include information such as the applicable interest rate, annual percentage rate (APR), any fees associated with the credit agreement, when payments are due, and the consequences of late payments. In addition, credit card companies must send customers periodic statements that contain a summary of account activity. The Truth in Lending Act also requires credit card companies to provide consumers with a chance to dispute any charges that they believe are incorrect. Additionally, credit card companies must provide adequate consumer protection and dispute resolution services. The Truth in Lending Act is an important law that ensures that consumers fully understand and are aware of the terms and conditions of their credit agreement. This helps to ensure that consumers are informed and protected from deceptive and unfair practices when it comes to credit cards and other forms of credit.
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