Other Free Encyclopedias » Law Library - American Law and Legal Information » Free Legal Encyclopedia: Tonnage tax to Umpire

Truth in Lending Act

credit consumer prospective protection

The Truth in Lending Act is contained in Title I of the CONSUMER CREDIT PROTECTION ACT (15 U.S.C.A. § 1601 et seq.). The CCPA is designed to assure that every customer who needs CONSUMER CREDIT is given meaningful information concerning the cost of such credit. The Truth in Lending Act requires that the terms in transactions involving consumer credit be fully explained to the prospective debtors. It sets forth three basic rules: (1) a creditor cannot advertise a deal that ordinarily is not available to anyone except a preferred borrower; (2) advertisements must contain either all of the terms of a credit transaction or none of them; and (3) if the credit is to be repaid in more than four payments, the agreement must indicate, in clear and conspicuous print, that "the cost of credit is included in the price quoted for the goods and services." This law does not impose regulations upon the advertising media, only upon the prospective creditor.

CROSS-REFERENCES

Consumer Protection.

Sojourner Truth - Further Readings [next]

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or