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Truth In Lending Act
Also known as: TILA
Definition: This Act (Title I of the Consumer Credit Protection Act) requires creditors to provide a consumer with certain written disclosures of anticipated finance charges associated with certain loans, such as mortgages. Furthermore, these anticipated charges must be disclosed in the format of Annual Percentage Rate. The act also requires similar disclosures to be made in advertising credit products. One of the purposes of this legislation was to better enable consumers to compare the real costs of borrowing between multiple creditors.
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