Final answer:
Congress passed the Truth in Lending Act, which mandates lenders to disclose finance charges and the annual percentage rate to consumers.
Step-by-step explanation:
Congress passed the Truth in Lending Act which requires lenders to disclose the finance charge and the annual percentage rate. This act helps to protect consumers by ensuring that they have access to the essential information needed to make informed decisions about credit offers and to compare different lending options.
Under this federal law, credit card companies and other lenders must provide clear documentation of the terms and conditions of the loan, including any fees or charges and the cost of borrowing, represented as the annual percentage rate (APR).