Which type of loans does the Truth in Lending Act specifically NOT regulate?

The Truth in Lending Act (TILA) primarily focuses on consumer credit and is designed to promote transparency in lending practices by requiring lenders to disclose important information about the terms and costs of credit. This includes the total costs of borrowing, annual percentage rates (APRs), and other key information to help consumers make informed decisions.

Interest rates themselves are not a type of loan but rather a component of the loan terms that are regulated under TILA when it pertains to consumer loans. The Act does not specifically regulate how lenders set their interest rates, allowing lenders flexibility in determining rates based on market conditions and risk assessments.

In contrast, personal loans, business loans, and auto loans are all types of credit extensions that fall under the guidance of TILA when they serve a consumer purpose. This means that loans intended for personal use or for purchasing consumer goods like vehicles must adhere to the disclosures and guidelines set forth by TILA.

Hence, the focus on interest rates as not being regulated by TILA underscores that while interest rates are important in understanding loan products, the Act does not restrict or govern the rates themselves. Instead, TILA centers around ensuring that consumers receive clear and honest information regarding the loans they are considering.