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The goal of TILA is to not only improve transparency but also allow the consumer to be able to shop around to other credit providers for better rates or terms. By establishing a standardized disclosure process for all banks, consumers can more easily compare offers.

Within the BOP Central Office, the Correctional Programs Division, Correctional Programs Branch has overall policy oversight for the IFRP. The branch chief appoints a National IFRP Coordinator who acts as a resource person for BOP staff, other DOJ components, other law enforcement agencies, and the public.

While an APR only accounts for simple interest, the annual percentage yield (APY) takes compound interest into account. As a result, a loan’s APY is higher than its APR. The higher the interest rate, and to a lesser extent the smaller the compounding periods, the greater the difference between APR and APY.