The Consumer Credit Protection Act is the legislation that launched truth in lending disclosures. This was a landmark legislation. For the first time . creditors had to state the cost of borrowing in a common language so that the consumer could figure out what the charges are, compete the costs od loans, and shop for the best credit deal.
The Truth in Lending Act (TILA) , title I of the consumer credit protection act is aimed at protecting the informed use of conusmer credit by requiring disclosures about its terms and costs. THe TILA is intended to enable the customer to compare the cost of a cash transaction with the cost of a credit transaction and to see the difference in the cost of credit among different lenders. Its main purpose is to assure a meaningful disclosure of credit terms. In general, the law applies to all real estate loans for personal, family, or household purposes; to lenders who offer credit or who help arrange credit; and to the advertising of most credit offerings.
Real estate loans that are exempt from the TILA include:
-credit extended primarily for business
-credit extended for commerical
-credit extended for agricultural purposes
-credit extended to other than a natural person
In addition, loans over the amount of $25,000.00 that are NOT real estate are exempt
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