Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Truth-in-Lending and how does it affect my loan?

April 26, 2017affect loan truth-in-lending

0

Posted

What is Truth-in-Lending and how does it affect my loan?

1 Answer

0

Posted

The Truth-in-Lending Act (TILA) is part of the larger Consumer Protection Act which includes laws aimed at specific lending practices. The Truth-in-Lending Act is actually found in Title 15 of the United States Code, starting at section 1601. TILA is implemented by Regulation Z (Title 12, Section 276 of the Code of Federal Regulations). The purpose of the Truth-in-Lending Act is implied by its name. The goal, is for the loan information to be presented in such a way that the borrower can clearly understand all of the costs BEFORE signing for a loan. This is to protect the borrower from deceptive lending practices.