How Have the Changes in the Truth in Lending Laws Helped?
Before we discuss the changes in the Truth in Lending Act (TILA), let us first understand what it is. This is a federal law governing the credit market. It also sets the minimum standard associated with the information given by the creditor for an installment credit arrangement. The information should have the details on the principal amount involved, the monthly payment required, the number of months to which the payment should be made as well as the APR. The Act also provides several provisions. Among them is the prohibition of credit card companies to issue cards to individuals who did not apply for it. However, they can send unsolicited credit applications. It also regulates the disclosure processes. A clear disclosure is essential to ensure that the consumers know the details of the transaction they are trying to get into. The TILA is developed to protect the borrowers. This dates back to 1968. From then on, changes were made to protect the borrowers better. Among the changes were
