What does TILA prohibit?

The Truth in Lending Act (TILA) includes provisions aimed at protecting consumers from certain practices related to credit. One significant aspect of TILA is its prohibition against the unsolicited issuance of credit cards. This means that credit card issuers cannot send out credit cards to consumers without prior request or consent. This provision is designed to prevent consumers from being placed in a situation where they receive credit cards that they did not want or request, which could lead to unintentional debt accumulation or identity theft.

By prohibiting unsolicited credit card issuance, TILA ensures that consumers have the agency to actively request credit rather than receiving it passively, which reflects a broader goal of promoting transparency and informed consent in credit transactions. This helps reinforce the importance of consumer awareness and control over their financial decisions, aligning with TILA’s objective of enhancing consumer protection in lending practices.