Which of the following statements expresses the purpose of the Truth-in-Lending Act?
A)to require lenders to charge a "reasonable" rate of interest
B)to regulate interest rates and terms of loans
C)to provide consumers with information necessary to make the best credit decision
D)to help lenders limit state laws

Question

Quizplus · Accepted Answer

The purpose of the Truth-in-Lending Act is to provide consumers with information necessary to make the best credit decision. It requires lenders to disclose certain information about the terms and costs of a loan, such as the annual percentage rate (APR), so that borrowers can compare offers from different lenders and make informed decisions about borrowing. The Act does not regulate interest rates or dictate what constitutes a "reasonable" rate of interest; rather, it aims to promote transparency and consumer protection in the lending process. The Act does not help lenders limit state laws; in fact, it is a federal law that applies nationwide.

Which of the Following Statements Expresses the Purpose of the Truth-In-Lending