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serg [7]
3 years ago
13

What is the purpose of the Truth in Lending Act?

History
2 answers:
Firdavs [7]3 years ago
3 0
To promote the informal use of consumer credit. 
balandron [24]3 years ago
3 0

Answer:

The purpose of the Truth in Lending Act of 1968 was to protect consumer rights when deciding to apply for credit by forcing financial institutions to release information on terms and conditions of banking loans and to disclose how a credit cost is calculated, as well as to allow consumers to cancel certain credit transactions, when the circumstances required it.

This Act, which is better known as TILA, was passed on May 29th, 1968 and it managed to regulate the way that information on consumer credits was being delivered to consumers before they decided to acquire such credit. The main purpose of the Act was to protect consumers from unknown information on loans that could endanger their financial security and credit history.

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