Truth In Lending Act - TILA

Who reads a credit card statement? It comes in the mail; you look at the minimum payment. You send a payment for that amount and go back to looking for a deal on adult-sized footie pajamas on Amazon.

Credit card companies (and other lenders) know that people don't really read the fine print. Theoretically, they could sneak anything in there and we'd still sign. The "Literal Arm and a Leg" clause, which uses your limbs as collateral for your jet ski loan. The "First Born" stipulation, which pledges your first-born child to eternal servitude in the sweatshop the credit card company runs to bang out new cards.

Helping to prevent this, we have the Truth in Lending Act. First passed in 1968, it forces lenders to let you know the details of the loan you're signing. It requires that lenders (including credit card companies) inform you about the costs related to the loan (the rates you're paying) and how many of your limbs are included in the deal.