Consumer Credit Protection Act (Truth in Lending Act)

TILA prohibits "bait and switch" advertising, where a lender advertises a loan with very attractive terms (the "bait") that they do not actually intend to offer, hoping to switch the consumer to a more expensive product once they apply.When advertising financing, if specific numbers are mentioned—such as the down payment amount, monthly payment amount, or number of payments—these are called "triggering terms." If an ad uses a triggering term (e.g., "Buy for only $500 down!"), the law requires the ad to also disclose the APR and the full terms of repayment so the consumer gets the whole picture. General phrases like "Low down payment" do not trigger these requirements.For certain types of loans, specifically refinances of a primary home or home equity loans (but not for the purchase of a new home), TILA grants borrowers a "right of rescission." This gives the borrower a three-day "cooling-off" period after closing during which they can cancel the loan for any reason without penalty.