TILA Disclosure
The TILA disclosure (or 'TILA box') is the federally required disclosure box that must appear on every consumer loan agreement before you sign. It shows four key numbers: the APR, the finance charge, the amount financed, and the total of payments. Truth in Lending Act regulations require this disclosure so borrowers can see and compare loan costs accurately.
The TILA disclosure box is the most consumer-friendly part of US lending law. It forces lenders to show you four specific numbers in a clearly labeled box, separate from the marketing copy of the loan agreement. The numbers are required to use specific definitions and calculations, so they’re directly comparable across lenders.
What’s in the box
The four required disclosures:
- Annual Percentage Rate (APR): the cost of credit as a yearly rate
- Finance Charge: the total dollar cost of credit
- Amount Financed: what you actually receive
- Total of Payments: the sum of all scheduled payments
The box also includes the payment schedule (number of payments, amount, and due dates) and various other state-specific disclosures depending on where you live.
What this means for shopping loans
The TILA box is the single most important thing to look at when comparing loan offers. Marketing language varies, lender presentation varies, but the TILA box is standardized. Read the box first. If you can’t find it before signing, something is wrong with the disclosure and you should walk away.
Federal law (Regulation Z) imposes serious penalties for inaccurate or missing TILA disclosures. Legitimate lenders provide them in clear, prominent form because they’re legally required to.