The Act That Requires Lenders to Inform Borrowers of the Annual

question 21

Multiple Choice

The act that requires lenders to inform borrowers of the annual rate of interest to be charged,plus related fees and services charges is called:

• A) The Consumer Protection Act.
• B) The Product Safety Act.
• C) The Predatory Mortgage Act.
• D) The Truth in Lending Act.

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Definitions:

United States Postal Service

The federal agency that provides postal and mail services in the United States, overseeing the delivery and collection of mail and parcels.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers are protected and to ensure fair trade, competition, and accurate information in the marketplace.

Federal Trade Commission

A U.S. federal agency tasked with protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Consumer Movement

A social and economic movement that promotes the rights and powers of consumers in relation to the sale and purchase of goods and services.