📌 Link to the Text of the Act
📌 Why It Was Done
TILA was enacted to ensure consumers receive clear and accurate information about the costs of credit, preventing deceptive practices and enabling informed borrowing decisions.
📌 Pre-existing Law or Constitutional Rights
Before TILA, credit terms were often hidden or misleading, with no standardized disclosure requirements. State laws varied widely, creating confusion and abuse.
📌 Overreach or Proper Role?
Supporters say it promotes transparency and consumer choice. Critics argue compliance is burdensome for lenders and can complicate credit markets.
📌 Who or What It Controls
- •Lenders and creditors (must disclose key terms such as APR, finance charges, and payment schedules)
- •Consumers (gain rights to clear loan information and rescission in some transactions)
- •Federal regulators (initially the Federal Reserve, now the CFPB)
📌 Key Sections / Citations
- •15 U.S.C. § 1601: Congressional findings and purpose
- •15 U.S.C. § 1635: Right of rescission for certain home-secured loans
- •15 U.S.C. § 1637: Open-end credit disclosures (e.g., credit cards)
📌 Recent Changes or Live Controversies
- •Dodd–Frank Act (2010): Transferred rulemaking to the Consumer Financial Protection Bureau (CFPB)
- •TILA now includes major sub-regulations like Regulation Z
- •Ongoing debates over payday lending, mortgage disclosures, and arbitration clauses
📌 Official Sources
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