Final answer:
The federal law requiring lenders to provide full written disclosure of credit terms and conditions, finance charges, and the APR incurred in a consumer loan agreement is known as the Truth in Lending Act (TILA). This law is part of the Consumer Credit Protection Act, which is aimed at protecting consumers from unfair practices in the lending industry.
Step-by-step explanation:
The federal law requiring lenders to provide full written disclosure of credit terms and conditions, finance charges, and the APR incurred in a consumer loan agreement is known as the Truth in Lending Act (TILA). This law is part of the Consumer Credit Protection Act, which is aimed at protecting consumers from unfair practices in the lending industry.
Under the TILA, lenders are required to provide borrowers with clear and accurate information about the cost and terms of their loans. This includes disclosing the annual percentage rate (APR), which represents the total cost of borrowing expressed as a yearly interest rate.
By providing borrowers with this information, the TILA helps promote transparency and empowers consumers to make informed decisions when taking out loans. It ensures that lenders cannot hide important details or engage in misleading practices that may harm borrowers.