Financing and Credit Laws

Truth in Lending Act (TILA) and Regulation Z

TILA requires lenders to disclose loan terms clearly so borrowers can compare offers. Key disclosures: Annual Percentage Rate (APR), finance charge, total amount financed, total payments, payment schedule. The APR includes interest PLUS most fees, giving a truer cost than the note rate alone. Regulation Z implements TILA and sets specific disclosure requirements.

15 U.S.C. §1601, 12 CFR §1026