# Truth in Lending Act

*Regulation & Compliance — Finicade finance glossary*

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.

**Also known as:** TILA, Regulation Z, truth in lending

**Related terms:** [APR (Annual Percentage Rate)](https://finicade.com/glossary/apr), [Consumer Financial Protection Bureau](https://finicade.com/glossary/consumer-financial-protection-bureau), [Mortgage](https://finicade.com/glossary/mortgage), [Credit Card](https://finicade.com/glossary/credit-card), [Disclosure](https://finicade.com/glossary/disclosure)

Source: https://finicade.com/glossary/truth-in-lending-act