What is the primary purpose of the Truth in Lending Act (TILA)?

The primary purpose of the Truth in Lending Act (TILA) is to ensure consumers are informed about credit products. This legislation was enacted to promote transparency in lending by requiring lenders to disclose key information about the terms and costs of credit. By giving consumers clear and comprehensible details regarding interest rates, payment schedules, and the total cost of borrowing, TILA aims to enable individuals to make more informed decisions when selecting credit products. This consumer awareness is essential in fostering a competitive market where consumers can compare offers from different lenders and understand the true cost of credit, which is crucial for responsible borrowing and financial planning.

The other options do not align with TILA's primary objectives. While increasing consumer protection in various industries, such as healthcare or the mortgage industry, is important, TILA specifically focuses on the transparency of credit products rather than regulating practices in those sectors. Similarly, while eliminating unfair advertising may be a goal of other regulations, TILA's main focus is on ensuring consumers have access to truthful information regarding their credit options.