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FEDERAL LAW · PRE-VERIFIED

TILA — Truth in Lending and Right to Rescind

Truth in Lending Act · 15 U.S.C. § 1601 et seq.

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TILA gives you the right to clear APR and cost disclosures before signing a loan. For refinances and home equity loans on your primary residence, you have 3 business days to cancel the loan after signing without any penalty.

Primary Statute

Truth in Lending Act

15 U.S.C. § 1601 et seq.

TILA requires creditors to clearly disclose credit terms including APR, total finance charges, payment schedule, and total amount financed. For certain home equity loans and refinances, TILA Section 125 provides a 3-business-day right of rescission to cancel without penalty.

https://www.consumerfinance.gov/rules-policy/regulations/1026/

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