Truth In Lending Act Legal Meaning and Definition

Here is a simplified definition of the legal term Truth In Lending Act.

Truth In Lending Act (n):

A U.S. federal law that mandates lenders to provide complete and clear information about the terms of a loan to borrowers. This includes details like interest rates and associated costs. The Act also supplies borrowers with a cancellation period, typically three days, during which they can decide to proceed or withdraw from the loan contract after comparing market rates.