What is the best practice for providing TILA disclosures?

Providing TILA (Truth in Lending Act) disclosures through an unexecuted installment sale contract is a recognized best practice because it ensures that all relevant information is clearly laid out in a formal document that recipients can review. This practice aligns with TILA’s intention to promote informed consumer choice by requiring lenders to provide comprehensive information about the terms and costs associated with borrowing.

An unexecuted installment sale contract typically includes not only the terms of the loan but also the total costs, payment schedule, and any potential fees. By providing this document, the borrower can review and understand their financial obligations before proceeding. This transparency helps consumers make more informed decisions regarding their credit transactions, which is the primary goal of TILA.

In contrast, other methods like sending disclosures via email may not guarantee that the borrower fully understands the terms, and providing a mere summary or verbal explanation lacks the comprehensive detail necessary for informed decision-making.