To make consumers aware of the cost of borrowing money, the federal government passed the Truth in Lending Act

Question

Is this true.

Answer 1

Yes. This is true. This is where you get the requirement that the Annual Percentage Rate (APR) and Total of Payments disclosure on closed ended loans. The intention is to enable borrowers to do comparison shopping for credit products.

There are also detailed disclosures on open ended credit.

It is too bad that most people ignore the disclosures.

Answer 2

Yes in general. It provide a common measurement for comparing the products.