What does the Truth in Lending Act primarily require?

The Truth in Lending Act (TILA) primarily requires that lenders provide clear and timely information about the terms and conditions of credit extended to consumers. Specifically, it mandates that lenders disclose certain key financial details, such as the annual percentage rate (APR), finance charges, and the total amount financed, before a consumer agrees to take on debt. This transparency is intended to help consumers understand the cost of borrowing and allow them to make informed financial decisions.

By requiring these disclosures prior to extending credit, the Act aims to prevent misleading lending practices and to promote informed consumer choices regarding loans and credit transactions. This focus on clarity and transparency is fundamental to the objectives of TILA, ensuring consumers have a comprehensive understanding of their obligations before entering into credit agreements.