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  • Exam Code: SC-400
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NEW QUESTION: 1
Truth-in-lending laws most likely are intended to:
A. Disclose the finance charge and the annual percentage rate.
B. Allow immediate wage garnishment by creditors.
C. Regulate the amount of interest that may be charged.
D. Prohibit the use of usurious interest rates.
Answer: A
Explanation:
Truth-in-lending laws are disclosure statutes. They typically apply to creditors that extend consumer credit to individual debtors. Examples of disclosures for a closed-end credit transaction, e.g., the typical car loan, include the total finance charge. Annual percentage interest rate, amount financed, late charges, security interest held by the creditor, the number and amounts of payments, due dates, and the total amount of payments.

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