Truth In Lending Act Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Truth In Lending Act, written in plain English, along with examples of how it is used.

What is Truth In Lending Act?

(n) When a loan agreement is entered between a lender and a borrower, the Lending Act stipulate a duty on the lender to provide all information about the interest rate to the borrower. A borrower gets three days grace period to compare the rates with that of the market rate and can decide to continue or cancel the loan agreement within this period.