What foundational compliance regulation addresses consumer protection in lending?

The Truth in Lending Act (TILA) is a key regulation that focuses on consumer protection in lending. It was established to promote informed consumer choices by requiring clear disclosure of the terms and costs associated with loans. This regulation mandates that lenders provide consumers with important information such as the annual percentage rate (APR), finance charges, payment terms, and total costs of borrowing. By ensuring that this information is transparent and accessible, TILA helps consumers to understand the true cost of credit, compare different lending options, and make informed financial decisions.

The other options do not specifically focus on consumer protection in the context of lending. For example, while the Fair Lending Act addresses issues related to discrimination in lending practices, TILA specifically provides comprehensive information about loan terms that empower consumers. The Credit Union Membership Access Act is related to membership access in credit unions, and the Sarbanes-Oxley Act primarily pertains to corporate governance and financial reporting for publicly traded companies, rather than consumer lending.