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The Johnson Debt Default Act of 1934 is a U.S. law prohibiting future loans to nations that have defaulted on repayment of previous loans to the U.S. This law came about following the collapse of the international financial situation created by the Dawes Plan and subsequently modified by the Young Plan as a result of the Great Depression.
Watch Related Videos. comments. The Truth-in-Lending Act was enacted by the U.S. Congress in 1968 as part of the Consumer Protection Act. Its purpose is to protect borrowers by ensuring that they are aware of the terms and costs of credit, so that they can knowledgeably compare different loans and lenders.