In real estate finance and consumer credit law, Truth in Lending refers to federal statutes and regulations, including Regulation Z, that are designed to ensure that prospective borrowers and credit purchasers receive clear and accurate information about the cost of credit before entering into a loan transaction.
These laws require lenders to disclose key terms such as interest rates, finance charges, and the annual percentage rate in a standardized format. The purpose of Truth in Lending is to promote informed decision making and allow consumers to compare credit terms more effectively.
