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

The primary purpose of the Truth in Lending Act (TILA) is to promote informed use of credit. This law requires lenders to provide clear and honest information about the terms and costs associated with borrowing. By mandating disclosure of important terms such as the annual percentage rate (APR), finance charges, and payment schedule, TILA aims to ensure that consumers can make educated decisions when considering credit options. This transparency helps to protect consumers from misleading practices and encourages more responsible borrowing behavior.

The other options, while related to financial transactions, do not accurately capture the primary focus of TILA. For instance, while the regulation of real estate transactions is important, it is not the specific aim of TILA. Similarly, overseeing financial institutions and managing mortgage loan data collection fall under different regulatory frameworks and do not reflect the intent behind TILA.