The Truth in Lending Act (TILA) is a federal law enacted to promote the informed use of consumer credit by requiring clear disclosure of credit terms and costs. It is a Title of the Consumer Credit Protection Act (CCPA). Enacted in 1968 to address concerns over deceptive credit practices, the Truth in Lending Act (TILA) mandates that lenders disclose the true cost of borrowing, fostering informed decision-making for consumers. TILA requires creditors to provide a comprehensive breakdown of credit terms and costs, including the annual percentage rate (APR), finance charges, total loan amount, total payment obligations, loan term duration, late fees, and any prepayment restrictions or penalties. TILA Key Points  Credit Transparency: Lenders must provide clear disclosures of credit terms, including the APR, finance charges, and total amount financed, as well as advance notice of rate increases  Right to Rescind: Consumers can cancel certain loans, like home equity loans, within three days of signing without penalty. Protection Against Unfair Practices: Prohibits unfair and deceptive practices. Requires excess payments are applied to the highest interest rate balances first. Transparent Billing Practices: Requires clear and timely billing statements for credit accounts, detailing interest rates and fees.