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TRUTH IN LENDING ACT: SUMMARY
US
Code Sec. 1601.as of: 01/23/00
Congressional findings and declaration of purpose
The Truth in Lending Act requires lenders to give you
written disclosures of the cost of credit and terms of
repayment before you enter into a credit transaction. The
summary details are described below:
- (a) Informed use of credit
The Congress finds that economic stabilization would be
enhanced and the competition among the various financial
institutions and other firms engaged in the extension of
consumer credit would be strengthened by the informed use
of credit. The informed use of credit results from an
awareness of the cost thereof by consumers. It is the
purpose of this subchapter to assure a meaningful
disclosure of credit terms so that the consumer will be
able to compare more readily the various credit terms
available to him and avoid the uninformed use of credit,
and to protect the consumer against inaccurate and unfair
credit billing and credit card practices.
- (b) Terms of personal property leases
The Congress also finds that there has been a recent trend
toward leasing automobiles and other durable goods for
consumer use as an alternative to installment credit sales
and that these leases have been offered without adequate
cost disclosures. It is the purpose of this subchapter to
assure a meaningful disclosure of the terms of leases of
personal property for personal, family, or household
purposes so as to enable the lessee to compare more
readily the various lease terms available to him, limit
balloon payments in consumer leasing, enable comparison of
lease terms with credit terms where appropriate, and to
assure meaningful and accurate disclosures of lease terms
in advertisements.
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