Adequate Notice

Much like a truancy law, which protects teenagers from themselves, the government passed the Truth In Lending Act. This act includes consumer protections when they take out a loan. The creditor must disclose things to the borrower like the interest rate, fees, and the grace period for missed payments. Sleazy lenders might sell the unaware borrower a loan with a 50% interest rate, or a huge fee if the monthly payment is late. These are the details consumers should consider if they want to protect themselves.