====== Truth in Lending Act (TILA) ======

The **Truth in Lending Act (TILA)** is a federal law designed to **promote informed consumer credit decisions** by requiring **clear disclosure of loan terms and costs**.

===== Key Purpose =====
  * Ensure consumers can **compare credit offers**
  * Prevent **deceptive lending practices**
  * Standardize disclosure of borrowing costs

===== Transactions Covered =====
  * Most **consumer credit** transactions
  * Residential mortgage loans
  * Refinances and home equity loans
  * Does **not** apply to commercial or agricultural loans

===== Required Disclosures =====
  * **Annual Percentage Rate (APR)**
  * Finance charges
  * Amount financed
  * Total of payments
  * Payment schedule

===== Right of Rescission =====
  * Applies to **refinances** of a principal residence
  * Borrower may cancel within **3 business days**
  * Does **not** apply to purchase loans

===== Regulation Z =====
  * TILA is implemented by **[[Regulation Z]]**
  * Overseen by the **Consumer Financial Protection Bureau (CFPB)**

===== Penalties =====
  * Civil liability
  * Criminal penalties for willful violations
  * Extended rescission rights for disclosure failures

===== Exam Tip =====
  * TILA focuses on **loan cost disclosure**
  * APR is the key concept tested
  * Remember **3-day right of [[rescission]]**