What is the Purpose of TILA? |
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| The Truth in Lending Act (TILA) was created to guarantee the accurate and meaningful disclosure of the costs of consumer credit. TILA is primarily a disclosure statute creating disclosure requirements.
TILA applies to everyone that offers or extends credit then five conditions are met: 1. Credit if offered or extended to consumers. 2. The offer or extension of credit is done regularly (creditor). 3. The credit is subject to a finance charge or is payable by written agreement in more than four installments. 4. The credit is primarily for personally, family or household pursposes. 5. The purpose of the credit is to refinance an already existing credit. TILA does not apply to purchases. |
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Which Credits Are Exempt From TILA? |
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| 1. Business, commercial or agricultural.
2. Public utility. 3. Securities or commodities accounts. 4. Home fuel budget plans, if no finance charges. 5. Certain student loans. |
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Truth in Lending Act (TILA)
Part 4 of 6