The Truth In Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans. For loans covered under TILA, you have a right of rescission, which allows you three days to reconsider your decision and back out of the loan process without losing any money. This right helps protect you against high-pressure sales tactics used by unscrupulous lenders. But TILA does not tell banks how much interest they may charge or whether they must grant a consumer loan.

TILA is located in the United States Code, beginning at 15 U.S.C. §1601. And the applicable regulations are located in the Code of Federal Regulations, beginning at 12 CFR § 226.1.

Congress enacted TILA to promote the "informed use of credit" by consumers. 15 U.S.C. § 1601(a). In doing so, Congress sought to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices. 15 U.S.C. § 1601(a). Though the TILA does not explicitly state that a cardholder can bring a suit claiming a violation of 15 U.S.C. § 1643, the majority of courts faced with such a claim have assumed the existence of a cardholder claim under section 1643.

A claim under section1643 is subject to a one-year statute of limitations. 15 U.S.C. § 1640(e) ("Any action under this section may be brought . . . within one year from the date of the occurrence of the violation.").

The Truth In Lending Act (TILA), codified at 15 U.S.C. § 1601 and implemented by Regulation Z (12 CFR § 226), is a federal law designed to ensure that consumers in California, as well as the rest of the United States, are given accurate and clear information about credit terms when obtaining loans. TILA mandates that lenders disclose costs associated with loans, allowing consumers to comparison shop. It also provides a 'right of rescission,' which gives borrowers a three-day period to cancel certain types of loans without penalty, protecting them from aggressive sales tactics. While TILA requires disclosure of credit terms and protects against unfair billing practices, it does not regulate interest rates or loan approvals. Consumers in California can bring a lawsuit for TILA violations, including those under 15 U.S.C. § 1643, which relates to unauthorized use of credit cards, within a one-year statute of limitations from the date of the violation.