The Truth-In-Lending Act

You need to be able to compare the cost of borrowing to paying cash, and compare the costs of borrowing from different lenders. To ensure consumers can do that, the federal government mandates that lenders disclose certain costs and terms.

You usually get these TILA disclosures when you receive an application for a loan, and you will get additional disclosures before the plan is open.

What lenders are required to tell you:
The Truth-in-Lending Act requires lenders to disclose the terms and costs of all loan plans, including the annual percentage rate, points and fees; the total of the principal amount being financed; payment due date and terms, including any balloon payment where applicable and late payment fees; features of variable-rate loans, including the highest rate the lender would charge, how it is calculated and the resulting monthly payment; total finance charges; whether the loan is assumable; application fee; annual or one-time service fees; pre-payment penalties; and, where applicable, confirm for you the address of the property securing the loan.

In general, neither the lender nor anyone else may charge a fee until you have received this information.

Lenders who advertise must meet Truth in Lending Act disclosure requirements with respect to the loan rate and terms. These include: 

Specific credit terms in the ad must be made available to applicants. 
If an advertisement includes a rate, it must state the rate as an annual percentage rate (APR) using that term. This rate takes into account additional costs incurred, such as fees and points, in the first year of the loan. 
If the annual percentage rate may be increased after the loan is closed the advertisement must state that fact. 
The only other rate allowed in the ad is a simple annual rate or periodic rate that is applied to an unpaid balance. It may be stated in conjunction with, but not more conspicuously than, the annual percentage rate. 
Where TILA applies

In general, this regulation applies to each individual or business that offers or extends credit when the credit is offered or extended to consumers; the credit is subject to a finance charge or is payable by a written agreement in more than four installments; the credit is primarily for personal, family or household purposes, if the loan balance equals or exceeds $25,000 or is secured by an interest in real property or a dwelling. 

TILA also provides consumers with substantive rights in connection with certain types of credit transactions. Those include the right to cancel certain real estate lending transactions within three days (right of rescission), regulation of certain credit card practices and a means for fair and timely resolution

The Truth in Lending Act is something that can help you every time you apply for credit, no matter what sort. 

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