Which act prohibits misleading advertising in the universe of loans and mortgages?

The correct choice is the Truth in Lending Act (TILA), which specifically addresses the issue of misleading advertising in the realm of loans and mortgages. This act was established to promote informed use of consumer credit by requiring clear and conspicuous disclosures of the terms and costs associated with lending. Its provisions help consumers understand the true cost of borrowing, including interest rates, terms of payment, and any potential fees associated with the loan.

Under TILA, lenders are obligated to provide accurate information to consumers, thereby preventing misleading or deceptive advertising practices. This is critical in ensuring consumers can make well-informed decisions regarding their financial commitments. The act emphasizes transparency and fair advertising, thereby protecting consumers from potential pitfalls associated with borrowing.

Other acts mentioned serve different purposes. The Fair Credit Reporting Act (FCRA) focuses on consumer credit reporting and the accuracy of information in credit reports. The Truth in Lending Act is specifically designed for clear communication regarding lending terms, making it the most appropriate choice for addressing misleading advertising in loans and mortgages. The TRID rule, which stands for TILA-RESPA Integrated Disclosure, is important for disclosures related to mortgage loans, but its primary function is the integration and standardization of disclosure forms, rather than directly prohibiting misleading advertising.