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.").

In North Carolina, as in all states, the Truth In Lending Act (TILA) provides consumers with protection against inaccurate and unfair credit billing and credit card practices. It mandates that lenders disclose the costs associated with a loan, enabling consumers to comparison shop for certain types of loans. TILA also grants consumers a 'right of rescission,' which allows them a three-day period to cancel the loan agreement without penalty, a safeguard against aggressive sales tactics by lenders. However, TILA does not regulate the interest rates lenders may charge or mandate the approval of consumer loans. The Act aims to ensure consumers are fully informed about credit terms to make better credit decisions and to protect them from unfair practices. TILA's regulations are codified in the United States Code at 15 U.S.C. § 1601 and the Code of Federal Regulations at 12 CFR § 226.1. If a consumer believes a lender has violated TILA, they may file a lawsuit, but such a claim must be brought within one year of the violation's occurrence, as per 15 U.S.C. § 1640(e).