What federal law protects consumers from predatory lending practices?

The Truth in Lending Act (TILA) is the federal law designed specifically to protect consumers from predatory lending practices. This act requires lenders to disclose important information about the terms and costs of loans clearly and concisely. It mandates transparency about interest rates, finance charges, and the total cost of the loan, allowing consumers to make informed decisions when selecting a mortgage or other credit products. By establishing clear guidelines regarding how lenders present this information, TILA aims to prevent deceptive practices that could exploit borrowers.

In contrast, the Fair Housing Act addresses issues of housing discrimination and ensures equal access to housing without regard to race, color, religion, sex, or national origin. The Home Mortgage Disclosure Act focuses on providing the public with information about mortgage lending patterns but does not specifically target predatory practices. The Real Estate Settlement Procedures Act, on the other hand, deals with the settlement process and aims to ensure that consumers are provided with pertinent information during the closing of real estate transactions.

Thus, TILA's primary focus on disclosure and transparency makes it the key federal law protecting consumers from predatory lending practices.