The Truth in Lending Act or Federal Consumer Credit Protection Act went into effect in 1969. This act came into effect to protect the borrower from paying rates higher than those advertised by a lender. The act requires that the lender make 18 disclosures to the borrower. Of these 18, the four who must be prominently displayed are 1) the amount financed, 2) the finance charge, 3) the annual percentage rate or APR and 4) the total payments.
The other 14 disclosures a lender must disclose are as follows, 1) identity of the lender, 2) the payment schedule, 3) prepayment penalties, 4) late payment charges, 5) any insurance required, 6) filling fees, 7) any collateral required, 8) any required deposits, 9) whether the loan can be assumed, 10) the demand feature, if the note has one, 11) total sales price of the item purchased if the seller is also the creditor, 12) adjustable features of the loan, 13) itemization of the amount financed, and 14) a reference to any terms not shown on the disclosure statement but which are shown on the loan contract.