what is the purpose of the truth in lending act?
The Truth in Lending Act is a law that was enacted in 1968 as a way to help protect consumers. Before this law was put in place, lenders could engage in many more questionable practices than they can today. Here are the basics of the Truth in Lending Act and how it helps you as a consumer. Purpose of Truth in Lending Act. The main purpose of the Truth in Lending Act is to ensure that consumers understand what they are getting into. The Truth in Lending Act is designed to provide full disclosure for all financial transactions involving consumers.