The primary purpose of the Truth-in-Lending Act is to
A) require full disclosure of the amount of the promissory note
B) provide meaningful information to borrowers on the cost of consumer credit
C) discourage excessive loan costs for consumers
D) establish limits on the total charges a lender can assess for a loan

Question

Quizplus · Accepted Answer

The primary purpose of the Truth-in-Lending Act is to provide meaningful information to borrowers on the cost of consumer credit. It requires lenders to disclose the terms and conditions of a loan, including the Annual Percentage Rate (APR), finance charges, and any fees associated with the loan. This allows borrowers to compare the cost of credit from various lenders and make informed decisions about borrowing. While the act does aim to discourage excessive loan costs for consumers and establish limits on charges, its main focus is on disclosure of credit terms.

The Primary Purpose of the Truth-In-Lending Act Is to