Truth in Lending (1968)

By Dominic Cruz and Aaron Robledo

What is it?

The truth in lending act is a law enacted in 1968 with the intention of protecting consumers in their dealings with lenders and creditors. The truth in Lending act was implemented by the Federal Reserve through a series of regulations.

Why the law?

Due to the growing middle class that created a demand for houses, cars and various big purchases.

How does the Law apply to us?

The law applies to most types of credit, whether it be closed in credit or open ended the act regulates what companies can advertise and say about the benefits of their loans and services.

The truth about the Truth in Lending act

When you sign up for a new credit card or buy a house, you are faced with pages and pages of small print - do you really read all of it? The answer is probably "no." Even though you may not go through the whole stack of paper as you sign here and initial there, some fine print should not get overlooked. Thanks to the Truth in Lending Act (TILA), the loan documents must contain the vital information you need

Conclusion

The Truth in lending act is good when reading the fine print so next time when your paying for a house thanks to the TILA act there is only the stuff you need.