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 consumers receive clear and straightforward disclosures regarding the costs of credit. This legislation was established to promote informed use of credit by requiring lenders to provide standardized information on loan terms, including interest rates, monthly payments, and the total cost of borrowing. By offering essential disclosures, TILA aims to protect consumers from deceptive lending practices and enable them to make informed decisions when taking on loans.

In contrast, standardizing property appraisals falls outside the scope of TILA, as appraisals are typically governed by different regulations concerning property valuation. Regulating market interest rates is also not a focus of TILA; instead, interest rates are primarily influenced by market conditions and economic factors. Lastly, enforcing credit limits is related to credit card laws and regulations, rather than the core purpose of TILA, which centers on transparency in lending practices.