Which act ensures consumers receive adequate information regarding the terms of a loan?

The statement accurately identifies the Truth in Lending Act as the legislation that ensures consumers receive clear and adequate information about the terms of a loan. This act is critical in promoting transparency in lending by requiring lenders to provide detailed disclosures about the cost of credit. Specifically, it mandates that lenders provide borrowers with key information like the annual percentage rate (APR), terms of the loan, total costs, and any fees associated with the transaction.

This focus on honesty and clarity helps consumers make informed decisions and compare loan terms from different lenders more easily. By requiring this standard disclosure, the Truth in Lending Act plays a key role in protecting consumers from unfair lending practices and ensuring they understand their financial commitments.

In contrast, the other acts mentioned serve different purposes: the Equal Credit Opportunity Act prohibits discrimination in lending; the Real Estate Settlement Procedures Act aims to provide disclosures related to the settlement process in real estate transactions; and the Consumer Financial Protection Act creates a regulatory agency focused on consumer financial protection, without specifically addressing loan terms disclosure.