Truth in Lending Act


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Related to Truth in Lending Act: Fair Credit Reporting Act

Truth in Lending Act

The Truth in Lending Act is contained in Title I of the Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq.). The CCPA is designed to assure that every customer who needs Consumer Credit is given meaningful information concerning the cost of such credit. The Truth in Lending Act requires that the terms in transactions involving consumer credit be fully explained to the prospective debtors. It sets forth three basic rules: (1) a creditor cannot advertise a deal that ordinarily is not available to anyone except a preferred borrower; (2) advertisements must contain either all of the terms of a credit transaction or none of them; and (3) if the credit is to be repaid in more than four payments, the agreement must indicate, in clear and conspicuous print, that "the cost of credit is included in the price quoted for the goods and services." This law does not impose regulations upon the advertising media, only upon the prospective creditor.

Cross-references

Consumer Protection.

Truth in Lending Act

n. a Federal statute which requires a commercial lender (bank, savings and loan, mortgage broker) to give a borrower exact information on interest rates and a three-day period in which the borrower may compare and consider competitive terms and cancel the loan agreement.

References in periodicals archive ?
She is extensively involved with Compliance EAGLE, QuestSoft's online integrated compliance review system that instantly verifies per loan compliance with HMDA, Real Estate Settlement Procedures Act (RESPA), Home Ownership and Equity Protection Act (HOEPA), Truth in Lending Act (TILA), state and local high cost laws and regulations, broker licensing, Office of Foreign Assets Control (OFAC), flood certification, theory of lending and state and local consumer credit laws.
The Federal Reserve Board published on November 14, 2001, its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount.
I am the director of the Federal Reserve Board's Division of Consumer and Community Affairs, which carries out the Board's responsibilities for administering a number of the consumer protection laws that make up the Consumer Credit Protection Act, including the Truth in Lending Act.
Regulation Z, which implements the Truth in Lending Act, requires creditors to provide the brochure, or a suitable substitute, to consumers when an application form is provided for a home equity line of credit.
The Federal Reserve Board published on November 21, 2000, its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act (Regulation Z) for mortgage loans that bear rates or fees above a certain amount.
Callaway defends clients in matters involving the Truth in lending Act and Regulation Z, the Equal Credit Opportunity Act and Regulation B, federal interest rate exportation matters, the Fair Debt Collection Practices Act, HOEPA, RESPA and Regulation U, state usury and consumer protection laws, consumer arbitration agreements, unfair trade practices and bank regulatory matters.
The Federal Reserve Board published on September 28, 2000, a final rule amending Regulation Z, which implements the Truth in Lending Act, to revise the disclosure requirements for credit and charge card solicitations and applications.