What does the acronym TILA stand for?

The acronym TILA stands for the Truth in Lending Act. This piece of legislation was enacted to promote transparency and protect consumers in their borrowing processes, primarily by requiring lenders to disclose key information about the costs of loans. Under TILA, borrowers must receive clear and comprehensible details about credit terms, including interest rates, finance charges, and the total cost of loans. This is crucial in aiding consumers to make informed decisions when choosing among different lending options.

The other options do not accurately reflect the purpose of the legislation or its established title. For instance, "Trust in Lending Act" and "Transparency in Lending Act" may imply a focus on ethical lending practices or openness, but they are not the actual name of the law. "Terms in Lending Act" could suggest a focus on lending terms but misses the essence of truthfulness that TILA emphasizes. Thus, TILA is well-defined as the Truth in Lending Act, which encapsulates its intent to ensure borrowers are well-informed.