What is a truth in lending disclosure?

A Truth in Lending Disclosure is a document required by the Truth in Lending Act (TILA) that provides borrowers with essential information about the terms and costs of a loan. It includes details such as the annual percentage rate (APR), loan amount, total finance charges, and payment schedule. This disclosure aims to promote transparency and help consumers understand the true cost of borrowing, enabling them to make informed financial decisions. Lenders must provide this information clearly and conspicuously before the borrower finalizes the loan agreement.