The Truth in Lending, or TIL, laws were passed by Congress in 1969 and are part of the Consumer Credit Protection Act. They require anyone who extends credit to a consumer to fully disclose the credit terms, including:

• How finance charges were computed
• The annual percentage rate
• The total finance charge over the life of the loan
• Payment schedule and total number of payments that will be made over the life of the loan
• Prepayment penalties (if any)
• Late payment terms
• If you have an adjustable rate mortgage (ARM, the lender must disclose the maximum interest rate that can be charged.
• When and how finance charges are imposed