This act is a federal law that was enacted in 1968. Its aim was to give more power to borrowers, home buyers and others seeking loans or credit. For those looking to use the house they already have to secure another loan, this act allows individuals three days to reconsider, so long as certain guidelines are met. The loan or transaction in question should have the lien of the borrower's main household as security. These loans cannot include a first mortgage but might include a second mortgage or home improvement loan. This act also requires that a borrower's consumer credit information be used in a responsible and transparent manner. This extends past mortgages to other loans and credit cards. Terms and borrowing costs should be disclosed to borrowers upfront and in a clear manner so that an individual knows what he or she is entering into. It also states that billing disputes should be handled and resolved in a timely manner.