|What is the Truth in Lending Act?|
The Truth in Lending Act is federal law which sets minimum standards for the information which a creditor must provide in an installment credit contract. The Truth in Lending Act requires creditors who deal with consumers to disclose information in writing about finance charges and related aspects of credit transactions, including finance charges expressed as an annual percentage rate. The amount being financed, the amount of the required minimum monthly payment, the total number of monthly payments, and the APR must all be provided to the debtor prior to entering into the consumer credit contract. The Act also establishes certain requirements for the advertisement of credit terms. Overall, the goal is to enable you to make accurate comparisons of offers of credit.