Asked by Maria Alanis on May 07, 2024
Verified
Congress passed the ________ which requires lenders to disclose the finance charge and the annual percentage rate.
A) Fair Credit Reporting Act
B) Equal Credit Opportunity Act
C) Truth-in-Lending Act
D) Fair Debt Collection Practices Act
Truth-In-Lending Act
A US federal law designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost.
Finance Charge
The actual cost of a loan in dollars and cents.
- Comprehend the duties and legal obligations involved in consumer transactions.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
C
Explanation :
The Truth-in-Lending Act (TILA) requires lenders to disclose the finance charge and the annual percentage rate to consumers before they sign a loan agreement. This law was created to provide transparency and protect consumers from hidden costs or confusing terms in credit agreements.
Learning Objectives
- Comprehend the duties and legal obligations involved in consumer transactions.
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