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 that aims to ensure consumers are well-informed about the costs and terms of credit before they enter into a loan agreement. In Massachusetts, as in all states, TILA mandates that lenders disclose important information about the cost of loans, including annual percentage rates, finance charges, and total payments to be made. It also provides consumers with a right of rescission, allowing them three days to withdraw from certain loan agreements without penalty, which is particularly useful in guarding against high-pressure sales tactics. While TILA requires clear disclosure of credit terms, it does not regulate the interest rates lenders can charge nor does it guarantee loan approval. Consumers in Massachusetts who believe their TILA rights have been violated have one year from the date of the alleged violation to bring a lawsuit, as per the statute of limitations outlined in 15 U.S.C. § 1640(e).