What is the primary purpose of the Truth in Lending Act (TILA)?

The primary purpose of the Truth in Lending Act (TILA) is indeed to promote informed consumer credit decisions. TILA was enacted to ensure that consumers are provided with clear and transparent information regarding the terms and costs of a loan so that they can make educated choices about borrowing.

This involves requiring lenders to disclose key information such as the annual percentage rate (APR), total financing charges, the total amount financed, and the payment schedule. These disclosures help consumers compare different credit offers and understand the implications of their borrowing decisions, ultimately fostering a more informed consumer marketplace.

While regulations concerning the advertising of consumer loans are an aspect of TILA, and it plays a role in the regulation of credit card operations, those aspects are secondary to its main goal of promoting transparency and informed consumer choice. The enforcement of bankruptcy laws falls outside the scope of TILA, as it primarily concerns consumer credit rather than the legal processes associated with bankruptcy.