What does the Truth in Lending Act (TILA) require lenders to disclose?

The Truth in Lending Act (TILA) mandates that lenders provide consumers with clear and comprehensible information regarding the cost of credit. This includes all finance charges and the true cost of obtaining credit, not just the interest rate or monthly payment amounts. This comprehensive disclosure is intended to help consumers understand their total financial obligations before taking on a loan or credit. By requiring the detailed breakdown of all associated costs, TILA aims to promote informed decision-making and transparency in lending practices. The focus is on ensuring that borrowers can compare different credit offers accurately, thus making educated choices about their financial commitments.