Which regulatory factor is primarily aimed at protecting consumers in lending?

The Truth in Lending Act (TILA) is primarily aimed at protecting consumers in lending by ensuring that they are adequately informed about the costs and terms associated with borrowing. Enacted in 1968, TILA requires lenders to clearly disclose important information such as the annual percentage rate (APR), finance charges, and the total amount financed. This transparency helps consumers compare different loan products and understand their obligations, which fosters informed decision-making and promotes competition among lenders.

In contrast, while redlining refers to discriminatory practices that deny services based on the racial or ethnic composition of certain neighborhoods, it does not directly function as a protective regulatory measure for consumers. The Fair Housing Act (FHA) addresses discrimination in housing-related transactions but is more focused on fair housing practices rather than the specific lending terms outlined in TILA. The Equal Credit Opportunity Act aims to prevent discrimination in credit transactions, but it does not provide the same level of detailed financial disclosure that enables consumers to make informed choices about lending options as TILA does. Thus, TILA stands out as a key regulatory factor specifically designed to protect consumers in the lending process.