The Truth in Lending Act (Regulation Z) mandates that all consumer creditors disclose borrowing costs in a standardized, prominent format commonly known as the TILA Box.
The Four Core Disclosures
- Annual Percentage Rate (APR): Standardized cost of credit reflecting interest and origination fees over an annual term.
- Finance Charge: Total dollar amount credit will cost, including interest, verification, and processing fees.
- Amount Financed: Net proceeds provided directly to the borrower or disbursed to third-party creditors.
- Total of Payments: The full dollar amount paid after fulfilling all scheduled installments.