Truth in Lending Act

Truth in Lending Act
Long title	An Act to safeguard the consumer in connection with the utilization of credit by requiring full disclosure of the terms and conditions of finance charges in credit transactions or in offers to extend credit; by restricting the garnishment of wages; and by creating the National Commission on Consumer Finance to study and make recommendations on the need for further regulation of the consumer finance industry; and for other purposes.
Acronyms (colloquial)	TILA, CCPA
Nicknames	Consumer Credit Protection Act
Enacted by	the 90th United States Congress
Effective	May 29, 1968
Citations
Public law	90-321
Statutes at Large	82 Stat. 146
Codification
Titles amended	15 U.S.C.: Commerce and Trade
U.S.C. sections created	15 U.S.C. § 1601
Legislative history
	Introduced in the Senate as S. 5 by William Proxmire (D–WI) on January 11, 1967; Committee consideration by Senate Banking Committee, House Committee on Banking and Currency; Passed the Senate on July 11, 1967 (92–0); Passed the House on February 1, 1968 (383–4, in lieu of H.R. 11601) with amendment; House agreed to House amendment on May 22, 1968 (agreed) with further amendment; Senate agreed to House amendment on May 22, 1968 (agreed); Signed into law by President Lyndon B. Johnson on May 29, 1968;
Major amendments
	Credit CARD Act of 2009; Dodd–Frank Wall Street Reform and Consumer Protection Act; Economic Growth, Regulatory Relief and Consumer Protection Act
United States Supreme Court cases
	Mourning v. Family Publications Service, Inc., 411 U.S. 356 (1973); Ford Motor Credit Co. v. Milhollin, 444 U.S. 555 (1980); Ford Motor Credit Co. v. Cenance, 452 U.S. 155 (1981); Anderson Bros. Ford v. Valencia, 452 U.S. 205 (1981); Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998); Green Tree Financial Corp.-Ala. v. Randolph, 531 U.S. 79 (2000); Household Credit Services, Inc. v. Pfennig, 541 U.S. 232 (2004); Koons Buick Pontiac GMC, Inc. v. Nigh, 543 U.S. 50 (2004); Chase Bank USA, N. A. v. McCoy, 562 U.S. 195 (2011); Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 259 (2015);

The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to promote the informed use of consumer credit by requiring standardized disclosures about credit cost and terms.

TILA grants consumers a rescission right for certain home-secured loans, regulates several credit card practices, and sets procedures for resolving billing disputes. With limited exceptions for high-cost mortgages, the law does not cap rates or fees. Instead it mandates uniform disclosures so borrowers can compare options. These requirements are implemented through Regulation Z, codified at 12 CFR 1026. The regulation also limits practices in home-equity plans (12 CFR 1026.40) and “higher-priced” mortgage loans (12 CFR 1026.35).

The regulation prohibits certain acts or practices — most connected to lender compensation — in connection with credit secured by a consumer's principal dwelling.