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 regulations at 12 CFR § 226.1, is a federal law that applies in Rhode Island as well as across the United States. It is designed to ensure that consumers are provided with accurate and clear information about credit terms, allowing them to make informed decisions and comparison shop for loans. TILA mandates that lenders disclose the costs associated with a loan before a consumer agrees to the terms. Additionally, TILA provides consumers with a right of rescission, giving 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 disclosure of credit terms and protects against unfair billing practices, it does not regulate the interest rates lenders may charge or mandate that a loan must be approved. In the event of a violation of TILA, such as those related to credit card liabilities under 15 U.S.C. § 1643, consumers generally have one year from the date of the violation to bring a lawsuit, as per 15 U.S.C. § 1640(e).