Truth in Lending Act (TILA)
A federal law that requires lenders to disclose the true cost of credit before you sign. Regulated lenders must give you a Loan Estimate and Closing Disclosure showing the APR, total finance charges, payment schedule, and total amount you will pay over the life of the loan. The goal is to let borrowers compare credit offers on equal footing and understand exactly what they are agreeing to. TILA applies to mortgages, auto loans, and most consumer credit — but not to private seller arrangements such as rent-to-own or owner-financing agreements, which have no equivalent disclosure requirement.