WHAT DOES THE FEDERAL TRUTH IN LENDING ACT PROVIDE?
Perhaps the Act with the most pervasive effect on consumer matters is the Federal Truth in Lending Act, found in Volume 15 of the United States Code beginning at section 1601. This Act is designed to ensure full disclosure of information in credit sales, credit card transactions, revolving loan accounts, and mortgages. The Act requires that the lender provide you with certain notices either before the agreement is made or before the first transaction is completed. You must be fully advised, in clear terms, of the total number of payments to be made, a schedule of repayments, the amount financed, finance charge, annual percentage rate, a description of collateral or security used for the loan, default charges, prepayment charges, rights on non-payment, and insurance information. The Truth in Lending Act also applies to credit card transactions. In the event your credit card is lost or stolen, you are only responsible for unauthorized transactions until you notify the card issuer of the
