NCh7 TRUTH-IN-LENDING ACT

Question 1

The truth in lending act is administered by what agency?

Answer 1

Consumer, financial protection bureau CFPB

Question 2

What is the purpose of the truth in lending act?

Answer 2

To allow consumers to understand the true cost of borrowing money

Question 3

What tells the borrowers the true cost of borrowing?

Answer 3

The APR or annual percentage rate

Question 4

What forms of media are regulated by the truth in lending act?

Answer 4

Broadcast print and Internet advertising

Question 5

In advertising, if any other terms outside of cash price or APR are stated what must be disclosed?

Answer 5

Full disclosure of all credit terms must be made

Question 6

The effective rate of interest, or what the borrower actually pays is the

Answer 6

APR or annual percentage rate

Question 7

Why is the APR usually higher than the interest rate?

Answer 7

Because it contains all charges, not just interest

Question 8

Who is the truth in lending act implemented by?

Answer 8

Regulation Z

Question 9

What does the truth in lending act implemented by regulation Z cover?

Answer 9

All real estate loans regardless of value and non-real estate loans up to $25,000