Truth in Lending

"Information is crucial to the effective operation of consumer financial markets. Durkin and Elliehausen have provided a valuable and comprehensive analysis of an important but often neglected topic, namely, required disclosures from financial services firms. Their analysis will play a significant role in the ongoing debate about making those disclosures less legalistic and more useful to consumers."--Randall S. Kroszner, Norman R. Bobins Professor of Economics, The University of Chicago "This is a very comprehensive and insightful text by respected and experienced regulatory economists on the proper economic and behavioral goals that should inform the regulatory implementation and interpretation of the consumer disclosure mandates of the Truth in Lending Act. Their extensive analysis convincingly suggests that to avoid an overly complex and costly regulatory regime, Congress, and the regulators, should focus on the comparison of the cost of credit, including a better designation of finance charges, as the primary disclosure goal of TILA, and should avoid pursuing or maintaining numerous collateral 'full disclosure' goals, including "behavioral" goals which may serve some other unrelated perceived social objective. Consider this required reading for all legislators, regulators, bankers and their advisors involved with TILA oversight, implementation or compliance."-- Neal L. Petersen, Attorney at Law, Former General Counsel, Federal Reserve Board "Scholars and policymakers have long needed a comprehensive treatment of the history, theory, and effectiveness of the Truth in Lending Act. And no one is better qualified to give us that treatment than respected scholars and veteran Federal Reserve economists, Thomas Durkin and Gregory Elliehausen. Durkin and Elliehausen tell the story of the triumphs and tragedies of the Truth in Lending Act, as well as a road to reform. In light of the recent financial crisis and the regulatory reforms that have followed in its wake, no book could be more timely and important in charting a path forward. This will be the standard work on Truth in Lending for years to come." --Todd J. Zywicki, George Mason University Foundation Professor of Law, George Mason University School of Law and Senior Scholar, Mercatus Center