Truth in Lending Act (TILA)

By: Madeline Schuldes and Bailey Bungert


The act was passed on May 29, 1968. This act is a part of the Consumer Credit Protection Act. This act was intended for protecting consumers in their dealings with lenders and creditors implemented by the Federal Reserve through many regulations.

Aspects of Act

Some aspects of the act that must be disclosed to a borrower prior to it's extending credit are the APR, term of the loan and total costs. There is no liability under the act for the media where the advertisements appear. However, the media can protect their customers by screening the advertisements to check if they're following the law.


TILA applies to most credit types whether it is closed ended or open ended credit. This act regulates what companies can advertise and say about their loans and services. Different states and industries have their own types of TILA.

Before the Act

Before the Act the credit companies were able to use false or the most attractive credit information to trick a buyer into thinking it was a great deal. After the act was passed the advertisement has to tell the whole story. The credit companies tried to scam the costumers to get more money.

People Affected

Anyone who uses credit are affected by this act to protect them from false advertisements