Consumer Credit Protection Act of 1968

The year 1968 was a pretty tough one in the United States. You can use Google to answer the “why” on that one. Or you can stay here and learn about one of the few positive developments from 1968: a credit lending law.

Yes, 1968 was that bad (well, Super Bowl II was pretty good).

That year, Congress passed the Consumer Credit Protection Act of 1968, also known as the Truth in Lending Act.

This Congressional Act created a number of disclosure requirements for companies issuing loans to U.S. customers. That list of lenders includes mortgage firms, auto-financing firms, and credit card issuers. The requirements include the disclosure of loan terms, annual percentage rates (APR), and cost to the borrower.

This law is the reason why, when you apply for a credit card, they send you a PDF or envelope in the mail that is 77 pages long and is drenched in “legalese.”