Index
Consumer ProtectionUnited States

Truth in Lending Act (TILA)

Summary

A federal law that requires lenders to provide standard disclosures about credit terms and costs so consumers can compare offers.

Rights & Rules

  • 01.
    Right to know the Annual Percentage Rate (APR) before signing
  • 02.
    Right to a 'cooling-off' period of 3 days to cancel certain home loans
  • 03.
    Right to clear disclosure of total finance charges

Penalties

  • 01.
    Civil liability for twice the amount of the finance charge
  • 02.
    Criminal penalties for creditors who willfully and knowingly give false information

Verified Citations

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