What does TILA stand for?

TILA stands for the Truth in Lending Act. Enacted in 1968, this federal law was designed to promote transparency and honesty in lending practices by requiring lenders to disclose key terms and costs associated with borrowing. The primary goal of TILA is to protect consumers from deceptive lending practices and to ensure that they have access to the necessary information to make informed financial decisions. This includes clear disclosures about interest rates, annual percentage rates (APRs), and total costs of loans, enabling consumers to compare different offers and understand their obligations when entering into credit agreements. The act also includes provisions regarding the right of rescission, allowing borrowers a certain period to reconsider a loan agreement after closing.