What must lenders disclose to promote informed use of consumer credit under TILA?

Lenders are required to disclose consumer credit costs in a uniform manner to ensure that consumers can make informed decisions about their credit options and understand the financial implications of borrowing. This standardization allows for easier comparison between different credit products, helping consumers grasp the full costs associated with loans, such as interest rates, fees, and other charges. Transparency in these costs is a fundamental aspect of the Truth in Lending Act (TILA), aiming to protect consumers and promote fair lending practices.

While other choices may contain relevant information that lenders might provide, they do not fully encompass the comprehensive and standardized approach required by TILA for promoting informed use of consumer credit. For example, merely disclosing interest rates or information about default consequences does not address the complete picture of consumer credit costs that must be uniform and clear for effective comparison.