Loan Disclosure (TILA)
Also known as: truth in lending disclosure, Reg Z disclosure, loan estimate
A federally required document that lenders must provide before you sign a personal loan agreement. Under the Truth in Lending Act (TILA), the disclosure must clearly state the APR, total finance charge, total amount financed, and the total repayment amount over the life of the loan.
Full definition
The Truth in Lending Act (TILA), implemented by the Federal Reserve's Regulation Z, requires lenders to disclose standardized cost information to consumers before they commit to a loan. The disclosure is designed to let borrowers compare loan offers apples-to-apples. Key figures that must be disclosed: (1) Annual Percentage Rate (APR) - the annualized cost of credit including fees, expressed as a percentage. (2) Finance Charge - the total dollar cost of the credit over the loan term (interest + fees). (3) Amount Financed - the amount of credit actually provided to you (loan amount minus upfront fees). (4) Total of Payments - the sum of all payments you will make, including principal and interest. When it must be provided: TILA requires the disclosure before you sign the loan agreement. For open-end credit like credit cards, lenders must also provide periodic statements. For mortgage loans, TILA now uses the Loan Estimate and Closing Disclosure forms under the TRID rules. How to use the disclosure: Compare the APR (not just the stated interest rate) across lenders, because APR includes origination fees that the stated rate does not. Compare the Total of Payments to understand the actual dollar cost of each loan option. Your rights under TILA: You have a right to receive the disclosure before signing. For some transactions (like a refinance on your primary home), you have a 3-day right of rescission - you can cancel the transaction within 3 business days of signing.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- June 15, 2026
- TILA (Truth in Lending Act)The federal law that requires lenders to disclose loan terms, APR, fees, and the schedule of payments before a borrower signs.
- FCRA (Fair Credit Reporting Act)The federal law that governs credit reports and credit-bureau practices, including your right to a free annual report and to dispute errors.
- ECOA (Equal Credit Opportunity Act)The federal law that prohibits lender discrimination based on race, religion, sex, marital status, age, national origin, or receipt of public assistance.
- MLA (Military Lending Act)Federal law capping consumer-credit APRs to active-duty service members and their dependents at 36% (the Military APR, or MAPR).
- CFPB (Consumer Financial Protection Bureau)The federal agency that supervises and enforces consumer financial-protection laws across most U.S. lenders.
- TCPA (Telephone Consumer Protection Act)The federal law governing telemarketing calls and texts, including the prior-express-written-consent requirement for autodialed marketing.
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