Which federal law requires lenders to disclose the cost of credit in a uniform manner?

The Truth-In-Lending Act (TILA) is the federal law that specifically requires lenders to disclose the cost of credit in a consistent and uniform manner. This law aims to promote informed consumer decision-making by ensuring that borrowers have clear and accessible information about the terms of their loans, including the annual percentage rate (APR), finance charges, and total loan costs. These disclosures make it easier for consumers to compare different lending offers and understand the full cost of borrowing.

By having standardized disclosures, TILA helps to protect consumers from deceptive lending practices and ensures transparency in lending relationships. This law plays a critical role in fostering trust between borrowers and lenders, as it mandates clear communication of credit terms, which aids consumers in making more informed financial choices.