What type of loans does the Truth in Lending Act specifically focus on?

The Truth in Lending Act (TILA) is designed to promote informed use of consumer credit by requiring disclosures about its terms and costs. It encompasses a wide range of consumer credit products, including but not limited to home mortgages, credit cards, and personal loans. The intention behind TILA is to ensure that consumers can understand and compare the costs associated with borrowing, thereby facilitating more informed financial decisions.

By focusing on all consumer credit products, the act aims to protect consumers from hidden fees and misleading terms, ensuring transparency in lending practices across various types of credit. This broad scope is essential for consumer protection, as it addresses the needs of individuals seeking different forms of credit beyond just residential mortgages or any single type of loan.