What is Title 1 of the Consumer Credit Protection Act known as?

Title 1 of the Consumer Credit Protection Act is known as the Truth-In-Lending Act. This legislation was enacted to promote transparency and ensure that consumers are fully informed about the terms and costs associated with borrowing funds. The Act mandates that lenders disclose important information such as the annual percentage rate (APR), the total finance charges, and the total amount of payments over the life of the loan.

The intent behind the Truth-In-Lending Act is to protect consumers from deceptive lending practices by providing them with the necessary information to make informed decisions regarding credit. By requiring clear and standardized disclosures, the Act helps consumers compare credit terms from different lenders effectively, thereby fostering a more competitive lending environment.

This foundational consumer protection law serves an essential role in the mortgage and credit industry, ensuring that borrowers are aware of their rights and the implications of their financial commitments.