Asked by Sophia Chiang on May 20, 2024
Verified
Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to
A) no federal law.
B) the Consumer Leasing Act.
C) the Consumer Product Safety Act.
D) the Truth-in-Lending Act.
Truth-In-Lending Act
A U.S. federal law designed to protect consumers in their dealings with lenders and creditors, ensuring clear disclosure of loan terms and costs.
- Comprehend how the Truth-in-Lending Act is applied across different credit transactions.
Verified Answer
MG
Moumita GhoshMay 25, 2024
Final Answer :
D
Explanation :
The Truth-in-Lending Act (TILA) applies to this transaction because it requires lenders to disclose credit terms and costs, which enables consumers to compare loan offers. TILA is designed to protect consumers in credit transactions by ensuring they are informed about the terms and costs of borrowing.
Learning Objectives
- Comprehend how the Truth-in-Lending Act is applied across different credit transactions.
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