The Truth in Lending Act

The Truth in Lending Act Summary​

The Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA) are federal laws that protect consumers from unfair lending practices. 

​

Truth in Lending Act (TILA) 

• Requires lenders to provide clear information about loan costs, including the annual percentage rate (APR) and finance charges

• Gives consumers the right to rescind certain loan agreements within three days

• Protects consumers from high-pressure sales tactics

​

Equal Credit Opportunity Act (ECOA) 

• Prohibits discrimination in credit transactions based on race, color, national origin, religion, sex, marital status, and age

• Protects consumers in residential real estate transactions

​

Fair Housing Act (FHA) 

• Prohibits discrimination in residential real estate transactions based on race, color, national origin, religion, sex, familial status, and handicap

​

Consumers can protect themselves from predatory lending by: Shopping around, Asking for a "Good Faith Estimate, Using a licensed lender, Reading all documents carefully before signing, and Making sure they are not rushed into the loan process.