Which act requires lenders to inform clients about all related charges and fees associated with loans?

The Truth in Lending Act (TILA) is designed to promote informed use of consumer credit by requiring disclosures about its terms and costs. Specifically, TILA mandates that lenders provide borrowers with clear and concise information regarding all charges and fees associated with loans, including the annual percentage rate (APR), loan terms, and any finance charges. This transparency helps consumers make informed financial decisions and compare different lending options. By ensuring that all costs are disclosed upfront, TILA helps protect consumers from hidden fees and misleading loan terms, thereby fostering fair lending practices.

The other acts listed focus on different aspects of consumer finance. The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending, while the Consumer Financial Protection Act establishes the Consumer Financial Protection Bureau to oversee and enforce financial regulations. The Electronic Signatures in Global and National Commerce Act deals with the validity of electronic signatures and records in commerce but does not focus on loan disclosure requirements.