What is a primary objective of consumer protection laws in lending?

A primary objective of consumer protection laws in lending is to educate consumers about their rights. This goal is vital because it empowers consumers to make informed decisions when it comes to borrowing and financial transactions. By understanding their rights, consumers can recognize unfair practices, identify predatory lending, and advocate for themselves in financial matters. This education aspect is essential for promoting fairness and transparency in the lending process, ultimately fostering a healthier relationship between consumers and lenders.

In contrast, the other options do not align with the fundamental aims of consumer protection laws. Encouraging high-risk lending could lead to exploitative practices that harm consumers. Limiting consumer borrowing may inadvertently restrict access to necessary funds, which does not support the goal of fair consumer access to credit. Lastly, increasing lender profits is typically a business objective rather than a protective measure for consumers, and it could conflict with ensuring that consumers receive fair and equitable treatment in financial services.