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 New York, 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 reconsider and potentially withdraw from a loan agreement without penalty. This right is particularly important for guarding against aggressive sales tactics by lenders. However, TILA does not regulate the interest rates lenders may charge or mandate that a loan must be approved. TILA is codified at 15 U.S.C. § 1601 and implemented by regulations at 12 CFR § 226.1. The Act aims to ensure consumers are provided with clear information about credit terms to make informed decisions and to protect them from unfair practices. While TILA does not explicitly state that consumers can sue for violations of 15 U.S.C. § 1643, which involves liability for unauthorized use of credit cards, courts have generally recognized the right to bring such claims. Any legal action under TILA must be initiated within one year from the date of the alleged violation, as per 15 U.S.C. § 1640(e).