Truth in Lending Act (TILA)

TILA requires lenders to disclose full credit costs in a standardized format before the borrower signs. For auto loans, required disclosures include the APR, total amount financed, total finance charge, and payment schedule.

TILA compliance is non-negotiable for dealerships arranging financing. F&I managers must ensure all required disclosures are presented accurately and in writing before any contract is signed. Errors or omissions in TILA disclosures create legal exposure and can result in loan rescission claims.