What is the Truth in Lending Act?
The Truth in Lending Act (TILA) is a federal law that was passed in 1968. It requires that lenders fully disclose the terms of credit, such as the annual percentage rate (APR), the length of the loan, and any fees associated with the loan. This act was designed to protect consumers by providing them with full information about the costs associated with credit. In South Carolina, the Truth in Lending Act applies to any credit card, loan, or line of credit that has an interest rate. This means that lenders are required to provide borrowers with the full cost of the loan, including the APR and any additional fees or charges. In addition, lenders are required to account for any adjustments to interest rates or fees throughout the term of the loan. The Truth in Lending Act also requires lenders to provide borrowers with all the information they need to make an informed decision about their loan. This includes a written disclosure document that contains all the important details of the loan, such as any fees or penalties. Additionally, borrowers must receive a copy of their loan agreement prior to signing it so they can review the details thoroughly. Overall, the Truth in Lending Act provides an important and necessary layer of protection for consumers when it comes to taking out credit. By requiring full disclosure of the terms and costs associated with credit, it helps to ensure that borrowers are not taken advantage of or misled by lenders.
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