Truth in Lending Act

The Truth in Lending Act is a federal statute that protects consumers in credit transactions by requiring disclosure of terms and costs. The text of this statute is provided as general information to the public. It may be amended, revised, or rescinded at any time without notice. This information is not intended to be legal advice. For more information, please see our disclaimer.

15 U.S.C. § 1612. Effect on government agencies

(a) Consultation requirements respecting compliance of credit instruments issued to participating creditor. Any department or agency of the United States which administers a credit program in which it extends, insures, or guarantees consumer credit and in which it provides instruments to a creditor which contain any disclosures required by this title [15 USCS §§ 1601 et seq.] shall, prior to the issuance or continued use of such instruments, consult with the Board to assure that such instruments comply with this title [15 USCS §§ 1601 et seq.].

(b) Inapplicability of Federal civil or criminal penalties to Federal, State, and local agencies. No civil or criminal penalty provided under this title [15 USCS §§ 1601 et seq.] for any violation thereof may be imposed upon the United States or any department or agency thereof, or upon any State or political subdivision thereof, or any agency of any State or political subdivision.

(c) Inapplicability of Federal civil or criminal penalties to participating creditor where violating instrument issued by United States. A creditor participating in a credit program administered, insured, or guaranteed by any department or agency of the United States shall not be held liable for a civil or criminal penalty under this title [15 USCS §§ 1601 et seq.] in any case in which the violation results from the use of an instrument required by any such department or agency.

(d) Applicability of State penalties to violations by participating creditor. A creditor participating in a credit program administered, insured, or guaranteed by any department or agency of the United States shall not be held liable for a civil or criminal penalty under the laws of any State (other than laws determined under section 111 [15 USCS § 1610] to be inconsistent with this title [15 USCS §§ 1601 et seq.]) for any technical or procedural failure, such as a failure to use a specific form, to make information available at a specific place on an instrument, or to use a specific typeface, as required by State law, which is caused by the use of an instrument required to be used by such department or agency.