Index

Truth in Lending Act (TILA)

Summary

A law designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost.

Rights & Rules

  • 01.
    Lenders must disclose the Annual Percentage Rate (APR) and finance charges in a clear format.
  • 02.
    For certain home-related loans, you have 3 days to cancel the deal (right of rescission).
  • 03.
    You are protected against unfair credit card billing practices.

Penalties

  • 01.
    Twice the amount of the finance charge (within certain limits).
  • 02.
    Actual damages sustained.
  • 03.
    Criminal penalties for willful and knowing violations (up to $5,000 fine or 1 year in jail).

Verified Citations

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