Warning
Info
Warning
Info
Simple English definitions for legal terms
Truth in Lending Act
Read a random definition: attester
A quick definition of Truth in Lending Act:
The Truth in Lending Act is a law that makes sure lenders tell borrowers all the important details about a loan, like how much interest they'll have to pay and any extra fees. The law also gives borrowers three days to compare different loan options and decide if they want to cancel the agreement.
A more thorough explanation:
The Truth in Lending Act is a federal law that requires lenders to provide borrowers with clear and accurate information about the terms and conditions of a loan. This includes the annual percentage rate (APR) and any other fees associated with the loan.
For example, if you are applying for a mortgage, the lender must disclose the APR, the total amount of interest you will pay over the life of the loan, and any other fees or charges that may apply. This information must be provided in a clear and easy-to-understand format, so that you can make an informed decision about whether to accept the loan.
The Truth in Lending Act also gives borrowers a three-day period in which to compare and consider competitive loan terms, and to cancel the loan agreement if they decide it is not in their best interest.
Overall, the Truth in Lending Act is designed to protect consumers from deceptive lending practices and ensure that they have access to the information they need to make informed decisions about borrowing money.