We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Truth in Lending?

By Ken Black
Updated Feb 18, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The Truth in Lending Act is a federal law requiring full disclosure of all terms associated with any credit transactions. This includes all costs. The law was first passed in 1968 and was intended to provide consumers with some protection against lenders, especially those acting in a predatory way. This act is also known as Regulation Z, which is where most of the requirements are spelled out.

The main focus of the law deals with fees the lender may charge for extending a line of credit. This includes, but is not limited to, the annual percentage rate. Other fees are also required to be disclosed, all under the term “Finance Charges.”

For ease of access, the Truth in Lending Act is broken down into several subsections generally broken down by loan type. Subpart A contains general rules. Subpart B outlines regulations for open-ended credit. Subpart C discusses close-ended credit. Subpart D is a miscellaneous section. Subpart E details special rules for certain home mortgage transactions.

Since its original passage in 1968, the Truth in Lending Act has undergone a number of changes to provide the consumer with an even greater level of protection. In 1970, the U.S. federal law was amended to prohibit the delivery of unsolicited credit cards to a consumer. More than a half dozen other major changes have been made to the Truth in Lending Act since that time.

Any time there are changes proposed to the Truth in Lending Act, it garners substantial attention from both lenders and consumer protection advocacy groups. Lenders often attempt to make a case the Truth in Lending act is too burdensome and opens up lenders to a number of punitive, baseless class-action lawsuits. Consumer advocates, predictably, take the opposite tack, pushing for even more protections in the law. Cases are often taken to the public through pricey advertising campaigns to try to garner public support for their respective sides.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.