What act ensures consumers receive details regarding the cost of their credit?

The Truth in Lending Act (TILA) is the act that ensures consumers receive clear and comprehensive information regarding the cost of credit. This legislation mandates lenders to disclose important information about the terms and costs associated with borrowing, allowing consumers to make informed decisions about their credit options.

Key provisions of TILA include the requirement for lenders to provide a written disclosure detailing the annual percentage rate (APR), the terms of the loan, and any fees that may be charged in the lending process. By doing so, TILA promotes transparency in lending practices, enabling consumers to understand the overall cost of credit and compare different mortgage offers effectively.

In contrast, the Fair Credit Reporting Act primarily focuses on the accuracy and privacy of information in consumer credit reports. The Equal Credit Opportunity Act ensures that all consumers are treated fairly and without discrimination in credit transactions. The Real Estate Settlement Procedures Act addresses the disclosure of settlement costs and procedures during the real estate buying process. Each of these acts serves a different purpose, but TILA specifically targets the transparency of credit costs directly.