Under the Truth-in-Lending Act, what must lenders disclose to consumers?

The Truth-in-Lending Act (TILA) was enacted to promote informed use of consumer credit by requiring disclosures about its terms and cost. One of the primary pieces of information that lenders are mandated to disclose is the annual percentage rate (APR). The APR is a crucial figure because it encompasses not just the interest rate on the loan but also any associated fees and costs involved in securing the loan, expressed as a single annualized percentage. This allows consumers to compare the cost of credit more effectively across different lenders and loan products, facilitating better-informed financial decisions.

The annual percentage rate serves as a valuable tool for consumers to understand the true cost of borrowing over a year, which aligns with TILA's objective of transparency in lending practices. While the other options may hold some significance in the context of a mortgage or loan, they are not specifically mandated disclosures under TILA. Therefore, the requirement to disclose the APR stands out as a critical aspect of the lender's obligations under this act.