What does truth in lending legislation primarily seek to ensure?

Truth in lending legislation primarily seeks to ensure complete transparency in lending costs. This legislation, particularly the Truth in Lending Act (TILA), was established to promote informed use of consumer credit by requiring disclosures about its terms and cost. It mandates that lenders provide clear and concise information regarding interest rates, the total cost of borrowing, and any fees associated with the loan, allowing consumers to understand the full financial implications of the credit they are seeking.

The focus on transparency aims to empower consumers, enabling them to make informed decisions when comparing different lending options. By ensuring that borrowers are fully aware of the terms, the legislation helps protect them from hidden fees and misleading information that could lead to financial difficulties. Therefore, the correct answer aligns with the primary objective of the truth in lending laws, which is to enhance clarity and honesty in the lending process.