What is the primary focus of the Truth in Lending Act (TILA)?

The primary focus of the Truth in Lending Act (TILA) is to ensure that borrowers are informed about the terms and costs of their loans. This federal law was enacted to promote transparency in the lending process, requiring lenders to disclose key information such as the annual percentage rate (APR), finance charges, and other terms related to credit. By providing borrowers with clear and concise information, TILA helps them make informed decisions regarding their loans, fostering a better understanding of financial obligations. This focus on informed consent is essential in protecting consumers from deceptive lending practices and hidden costs, which can lead to financial hardships.