TILA Basics
This law requires lenders to disclose the true cost of borrowing.
Truth in Lending Act
This law protects consumers from abusive debt collectors.
Fair Debt Collection Practices Act
These two federal laws help protect people who borrow money.
Truth in Lending Act and the Fair Debt Collection Practices Act
This decade saw the passage of the Truth in Lending Act
1960s
The true yearly cost of borrowing including interest and fees
APR
This number represents the true yearly cost of a loan including fees.
Annual Percentage Rate (APR)
Debt collectors cannot legally call before this morning time.
Business loans are generally NOT covered by these laws. They apply mostly to this type of borrower.
The Consumer
This decade saw the passage of the Fair Debt Collection Practices Act
1970s
The total dollar amount a loan will cost over time
Finance Charge
Under TILA, lenders must clearly disclose this total dollar amount of what credit will cost.
The finance charge
Debt collectors cannot threaten you with this punishment for unpaid consumer debt.
Jail, etc
First-time borrowers especially benefit from this law’s transparency rules
Truth in Lending Act
TILA was passed in this specific year
1968
The official written notice debt collectors must send within five days
debt validation (verification notice)
For certain home loans, borrowers have this many days to cancel.
3 days
Within five days of first contact, collectors must send this.
Written verification of the debt
People being harassed over credit card or medical debt are protected by this law
Fair Debt Collection Practices Act
FDCPA was passed in this specific year
1977
The right to cancel certain home loans within three business days.
What is the right of rescission
This federal agency enforces TILA today.
Consumer Financial Protection Bureau
Collectors must stop contacting you if you send this type of request.
A written request to cease communication
These types of loans are protected under both laws when used for personal purposes.
Consumer Loans
Both of these laws were passed to prevent this general problem in lending and debt collection
unfair or deceptive financial practices
The act of using abusive, threatening, or deceptive tactics to collect debt
unfair debt collection