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

The primary purpose of the Truth in Lending Act (TILA) is to protect consumers in credit transactions. TILA aims to ensure that consumers are informed about the costs and terms of credit, enabling them to make educated decisions regarding borrowing. It requires lenders to disclose important information, such as the annual percentage rate (APR), finance charges, and other associated costs, in a clear and understandable manner. This transparency helps consumers compare different credit offers and understand their financial obligations, thereby fostering fair lending practices.

The other options relate to aspects of financial services or regulations but do not align with the core objectives of TILA. Standardizing appraisal processes is more related to property valuation and mortgage practices rather than consumer credit protections. Regulating bank interest rates does not fall under TILA's jurisdiction, as this is typically managed through monetary policy and other regulatory frameworks. Similarly, providing tax incentives for lenders does not relate to TILA's primary goal of consumer protection in credit transactions.