Which law requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of

Question

neonofarm [45]

3 years ago

10

Which law requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of

various lenders.

Business

1 answer:

Romashka-Z-Leto [24] · Answer 1 · 2022-09-03T03:32:50+03:00

Answer: The Truth in Lending Act (TILA)

Explanation: The Truth in Lending Act (TILA) is a federal law passed to ensure that loan consumers are treated fairly by loan lenders.

TILA requires lenders to disclose credit terms in an easily understandable manner so that consumers can confidently compare interest rates and conditions with others in the business.

Information to be disclosed include, amount, APR, finance charges, a schedule of repayment over the period of the loan.