What does the Truth in Lending Act require when advertising certain terms?

The Truth in Lending Act (TILA) mandates that when certain terms of credit are advertised, there must be full disclosure of any down payment terms associated with the transaction. This act aims to promote informed consumer decision-making by ensuring that potential borrowers have clear and accessible information about the terms of credit, including any upfront costs like down payments.

This requirement helps consumers understand the total financial commitment they are making when purchasing a vehicle on credit. It conveys transparency in financial transactions, thus preventing deceptive advertising practices that might obscure the true cost of borrowing. By requiring full disclosure of down payment terms, TILA ensures that consumers are not misled and can accurately assess their financial obligations.