Under the Truth In Lending Act, what must be disclosed to the customer?

The Truth In Lending Act (TILA) is designed to promote informed use of consumer credit by requiring clear and conspicuous disclosure of the terms and costs of loans. One crucial aspect that TILA mandates is the disclosure of the total number of payments required under the loan agreement. This helps consumers understand the full commitment they are making and assess their ability to repay the debt.

By knowing the total number of payments, customers can better evaluate their financial obligations and make informed decisions about whether to proceed with the transaction. This transparency is fundamental to preventing confusion and ensuring that consumers are aware of what they are signing up for.

While the terms of service may provide additional context regarding the loan, they are not specifically required under TILA. Discount rates and payment frequency may also be relevant information, but they do not carry the same critical importance for overall repayment understanding as the total number of payments does.