What requirement must lenders follow regarding advertising under TILA?

Lenders are required to include key terms such as the Annual Percentage Rate (APR) and any required disclosures in their advertising as mandated by the Truth in Lending Act (TILA). This requirement is in place to ensure that consumers are provided with crucial information that impacts their understanding of the cost and terms of the loan product being offered. Transparency is a core principle of TILA, which aims to protect consumers by ensuring they have access to important facts about loans before making borrowing decisions.

Including the APR is particularly important because it reflects the cost of borrowing on an annual basis, allowing consumers to compare different loan offers more easily. Required disclosures might also include details about loan terms, fees, or payments, which helps consumers make informed financial choices. Other advertising practices that focus solely on positive aspects or omit crucial details would not satisfy the regulations set forth by TILA, as they could mislead consumers about the true cost and terms of a loan.