What does TILA stand for?

TILA stands for the Truth in Lending Act, which is a critical piece of legislation in the United States that was enacted to promote informed use of consumer credit by requiring disclosures about its terms and costs. The act ensures that consumers receive clear and standardized information about loan offers, which aids them in understanding the true cost of borrowing.

This law mandates lenders to disclose various aspects of credit transactions, including the Annual Percentage Rate (APR), terms of the loan, and any associated fees, allowing consumers to make more informed decisions. By doing so, TILA helps protect consumers from misleading lending practices and promotes transparency in the lending process, making option A the correct answer.