Truth-in-Lending Act

Truth-in-Lending Act definition - legal

n

A federal statute that requires commercial lenders to provide accurate information relating to the cost of borrowing, in language that a normally intelligent person could be expected to understand. Lenders must furnish the dollar amount of the interest charges, as well as the annual rate of interest. Borrowers pledging real property as collateral must be given a three-day cooling-off period, during which they may change their minds.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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