What does TILA primarily aim to ensure for borrowers?

The Truth in Lending Act (TILA) primarily aims to ensure that borrowers receive clear and accurate disclosure of credit terms. This legislation requires lenders to provide detailed information about the costs associated with borrowing, such as the annual percentage rate (APR), finance charges, and the total amount financed. By making these terms transparent, TILA helps consumers understand the true cost of loans, enabling them to make informed financial decisions.

This focus on disclosure is critical because it addresses potential misinformation and allows borrowers to compare different lending options effectively. Clear communications about credit terms protect consumers from hidden fees or predatory practices, promoting fairness in lending.

While other options like fair lending practices and consumer protection from predatory lending align with the broader objectives of promoting fairness and safeguarding consumers in the market, the core mission of TILA specifically revolves around ensuring that truthful and comprehensive information about credit is readily available to borrowers.