This federal law is primarily concerned with disclosures and advertising.

• A. Truth-in-Lending Act
• B. Fair Credit Reporting Act
• C. Dodd-Frank Act
• D. Home Mortgage Disclosure Act

Answer: (A)

Disclosures and advertising in consumer lending are governed by the Truth-in-Lending Act. It requires lenders to reveal the true cost of credit in a standardized way, including the annual percentage rate, the finance charges, the amount financed, and the total payments. It also has strict advertising rules to prevent misleading terms; when an ad states a specific payment amount, down payment, or other term, additional disclosures must be provided so the consumer can clearly see the actual cost of the loan. This combination helps borrowers compare offers accurately and avoids deceptive advertising.

The other acts address different areas: the Fair Credit Reporting Act deals with credit-reporting accuracy and privacy; the Dodd-Frank Act broadens financial regulation and includes mortgage-related protections but isn’t primarily about disclosures and advertising; the Home Mortgage Disclosure Act focuses on collecting and reporting mortgage data to monitor lending patterns.