Truth in Lending Act

Subpart A – General
Purpose of the TILA and Regulation Z
The Truth in Lending Act is intended to ensure that credit terms are disclosed in a
meaningful way so consumers can compare credit terms more readily and knowledgeably.
Before its enactment, consumers were faced with a bewildering array of credit terms and
rates. It was difficult to compare loans because they were seldom presented in the same
format. Now, all creditors must use the same credit terminology and expressions of rates. In
addition to providing a uniform system for disclosures, the act is designed to:
? Protect consumers against inaccurate and unfair credit billing and credit card practices;
? Provide consumers with rescission rights;
? Provide for rate caps on certain dwelling-secured loans; and
? Impose limitations on home equity lines of credit and certain closed-end home

The Law Offices of Michael D. Stewart

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