What does TILA stand for in the context of lending?

The term TILA stands for the Truth in Lending Act. This federal law was enacted in 1968 with the goal of promoting informed consumer credit decisions through disclosure of the terms and costs associated with borrowing. It requires lenders to provide clear and concise information about the loan terms, including the annual percentage rate (APR), finance charges, and the total cost of credit. This transparency helps consumers compare different lending options effectively and understand the implications of their borrowing decisions.

Other options presented do not accurately represent the legislation's recognized title or its intent. For instance, "Truth in Loan Agreements" does not capture the broader scope of consumer credit protection that TILA encompasses. Similarly, terms like "Transparent Interest in Lending Act" and "Taxes on Interest Loans Act" do not correspond to any actual legal framework related to lending practices and do not reflect the consumer protection focus of the Truth in Lending Act.