Which of the following best describes the Truth in Lending Act?

The Truth in Lending Act (TILA) is fundamentally designed to ensure consumers receive clear and concise information about the costs associated with borrowing. It requires lenders to disclose important terms and conditions of credit, including the annual percentage rate (APR), terms of repayment, and total costs of credit. This transparency is crucial for consumers to make informed decisions when considering loans or credit products.

The primary goal of TILA is to promote informed use of consumer credit by standardizing the information that must be provided to borrowers. By mandating clear disclosure of loan terms and fees, the Act aims to protect consumers from deceptive lending practices and facilitate comparison shopping for credit.