Which act is commonly referred to as the "Truth in Lending Act"?

The commonly referred "Truth in Lending Act" is officially named the Consumer Credit Protection Act. This legislation was enacted to promote the informed use of consumer credit by requiring disclosures about its terms and costs, enabling consumers to make better financial decisions.

The Act mandates that lenders provide clear and understandable information about the conditions of credit, including the annual percentage rate (APR), finance charges, and the total cost of credit. This transparency is aimed at protecting consumers from deceptive lending practices and ensuring they have access to the information necessary to compare credit offerings effectively.

Other acts, while important in their own rights, serve different purposes. For example, the Equal Credit Opportunities Act focuses on preventing discrimination in lending, while the Fair Credit Reporting Act regulates how credit information is collected and shared. The Credit Card Accountability Act addresses specific issues related to credit cards, such as restrictions on rate increases and other practices that could harm consumers. However, none of these acts encompasses the broad disclosure requirements set forth in the Truth in Lending Act like the Consumer Credit Protection Act does.