The Truth in Lending Act (TILA) was intended as a consumer protection against lenders lying or otherwise altering agreed upon terms. TILA requires lenders to fully disclose the terms of the credit being offered including full transparency concerning:

(1) interest rates

(2) the amount/percentage required to satisfy the loan

(3) time limits

(4) penalties, and

(5) loan ownership.

TILA allows consumers to file suit against lenders that attempt to claim a term or condition on a loan that they never disclosed. Important terms to understand include: APR, interest, finance charges, points, service/carrying charges, escrow, loan fees, premiums, broker fees, and appraisal fees.

*Consumers are responsible for understanding the rules that are presented; if terms are disclosed and then agreed to, not understanding agreed upon terms is not a valid excuse and will not protect the consumer.

KEYWORDS: TILA, Truth in Lending Act, Credit, Disclosure, Consumer Protection, Arizona Bankruptcy