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KnowledgeCity

Truth in Lending Act

Understand credit disclosure requirements to support compliant lending decisions.
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Course: On-Demand
Provider :  KnowledgeCity  5 chapters ·  23 Lessons ·  1h 13m  in English 

Course Description

In this Truth in Lending Act course, you’ll understand the disclosure requirements that govern consumer credit products. We’ll also examine how Regulation Z applies those requirements across closed-end loans, open-end accounts, and credit advertising. This knowledge helps you communicate credit terms clearly and support informed consumer decisions. To build that understanding, we’ll take a closer look at the purpose and scope of TILA.

We’ll explore standardized credit terminology, finance charge and APR rules, and disclosure requirements across major credit products. You’ll examine borrower protections, including rescission rights, billing error procedures, and liability limits for unauthorized use. We’ll also cover integrated mortgage disclosures, advertising standards, compliance controls, remediation, and recordkeeping expectations. By the end, you’ll be able to identify required disclosures and recognize the compliance risks associated with inaccurate or incomplete disclosures.

Learning Objectives:

• Define the purpose and scope of the Truth in Lending Act

• Identify disclosure requirements for closed-end and open-end credit

• Explain mortgage disclosure requirements under the integrated TILA framework

• Describe borrower protections under TILA

• Recognize compliance controls and enforcement risks

What You'll Learn

  • Define the purpose and scope of the Truth in Lending Act
  • Identify disclosure requirements for closed-end and open-end credit
  • Explain mortgage disclosure requirements under the integrated TILA framework
  • Describe borrower protections under TILA, including rescission rights, billing error procedures, and liability limits for unauthorized use
  • Recognize compliance controls, enforcement risks, and recordkeeping expectations
  • Apply credit advertising compliance standards when communicating credit terms

Key Takeaways

  • The Truth in Lending Act establishes disclosure requirements that govern consumer credit products, and Regulation Z applies those requirements across closed-end loans, open-end accounts, and credit advertising.
  • TILA uses standardized credit terminology along with finance charge and APR rules to help communicate credit terms clearly and support informed consumer decisions.
  • Borrower protections under TILA include rescission rights, billing error procedures, and liability limits for unauthorized use.
  • Mortgage lending is covered by integrated mortgage disclosure rules under the TILA framework, including cancellation rights.
  • Inaccurate or incomplete disclosures carry compliance risks, making compliance controls, remediation, and recordkeeping important.

Frequently Asked Questions

What does this Truth in Lending Act course cover?

The course covers the purpose and scope of TILA, standardized credit terminology, finance charge and APR rules, disclosure requirements for closed-end and open-end credit, integrated mortgage disclosures, credit advertising standards, borrower protections (rescission rights, billing error procedures, liability limits for unauthorized use), and compliance controls, remediation, and recordkeeping expectations.

How does Regulation Z relate to this course?

The course examines how Regulation Z applies TILA's disclosure requirements across closed-end loans, open-end accounts, and credit advertising.

What skills will I gain from this course?

You will build skills in consumer lending, interest rates, and the Truth in Lending Act, including the ability to identify required disclosures and recognize the compliance risks associated with inaccurate or incomplete disclosures.

Does the course include knowledge checks?

Yes. The lessons include multiple "Test Your Knowledge" segments interspersed throughout the course.

Does the course address mortgage-specific requirements?

Yes. It covers integrated mortgage disclosure rules under the TILA framework and cancellation (rescission) rights in mortgage lending.