What is "The Truth In Lending Act"?

The Truth In Lending Act (also know as TILA) was enacted in 1968 to protect the consumer from fraudulent lending and credit practices. TILA was implemented by the Federal Reserve through a series of regulations.

The most important aspect of the Act concerns important pieces of information that must be disclosed before credit can be extended to the consumer. The primary disclosures that must be made are:

• the terms and conditions of the loan
• the finance charge
• the annual percentage rate (APR)
• the amount financed (the borrows cost)
• the total payments

The terms and conditions of the loan must be conspicuous and presented to the consumer before signing.

Today's Blog Courtesy of 

Bernita McKinion

Office and Acquisition Manager, Homeland Investment Properties