ON MAY 29, 1968, the U.S. Congress passed the Truth in Lending Act (TILA), Public Law 96-32. TILA was designed to promote economy stability by protecting the credit rights of consumers. Provisions of the act apply to individuals and businesses that on a regular basis offer and extend credit involving finance charges to individuals, families, or households. Credit extended for business and commercial activity and to security and commodities accounts are not covered by TILA. Loans in excess of $25,000 and public utility tariffs are excluded.

The bill came in response to lobbying by consumer groups and the realization that consumers were spending millions of dollars every year in unsuccessful efforts to deal with unfair credit practices. It was understood that in their quest for ever-increasing ...

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