What must lenders provide consumers under the Truth in Lending Act (TILA)?

Under the Truth in Lending Act (TILA), lenders are required to provide consumers with a clear disclosure of all costs associated with the loan. This includes providing detailed information on the annual percentage rate (APR), finance charges, and other pertinent fees that affect the total cost of borrowing. The purpose of this disclosure is to ensure that consumers are fully informed about the financial implications of their borrowing decisions, allowing them to compare different loan offers and make more informed choices.

This requirement helps promote transparency in lending practices and protects consumers from hidden fees and unexpected costs. By clearly outlining all costs, TILA empowers consumers, enabling them to better understand their financial commitments and making it easier for them to shop for the best loan terms available.