What is one main objective of the Truth in Lending Act?

The Truth in Lending Act (TILA) primarily aims to promote transparency and fairness in credit advertising and lending practices. By ensuring that lenders disclose clear and truthful information about the terms and costs of loans, TILA helps consumers make informed decisions when considering credit options.

One of the act's key provisions is the requirement for lenders to provide a standardized disclosure statement, which allows borrowers to easily compare various loan products and understand the total cost of borrowing. This emphasis on fair advertising ensures that consumers are not misled by complex terminologies or hidden fees, fostering a more competitive lending environment and protecting consumer rights.

Other options focus on aspects that are not central to the TILA's mission. For instance, regulating bank interest rates, eliminating consumer debt, or creating more loan types does not directly align with the objectives of TILA, which is rooted in transparency and informed decision-making regarding loans. Thus, the correct choice effectively encapsulates the primary goal of the Truth in Lending Act.