Truth in Lending Act
Also called: TILA, Regulation Z, truth in lending
The Truth in Lending Act requires lenders to disclose credit costs in a standard form, and it is why APR exists as a comparable figure at all. Standardisation is the whole point: before it, lenders quoted rates on incompatible bases so comparison was impossible. It also grants a right of rescission on certain home loans, giving borrowers three days to cancel.