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TRUTH IN LENDING ACT (TILA)

A federal law requiring adequate disclosure for consumer protection purposes. It requires credit card and charge card companies to disclose interest rates and other information about an account and all other information fairly so that it can be reasonably understood by consumers. Disclosures required include the terms of a loan, the total amount and interest rate of a loan, the amount and due dates of all payments that are need for repayment of the loan. The TILA also places regulations on mortgages.

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