The first significant federal law enacted to protect consumers from predatory lending practices was:

• A. Fair Housing Act
• B. Equal Credit Opportunity Act
• C. Truth in Lending Act
• D. Real Estate Settlement Procedures Act

Answer: (C)

The key idea is protecting consumers through clear loan terms. The Truth in Lending Act requires lenders to disclose the true cost of credit in a standardized way—showing the annual percentage rate, finance charges, amount financed, total payments, and the payment schedule. This transparency lets borrowers compare offers, understand exactly what they’re agreeing to, and spot hidden or deceptive terms before signing. Enacted in 1968 as part of the Consumer Credit Protection Act, it was the first federal step specifically aimed at curbing predatory lending by ensuring meaningful disclosures rather than relying on vague or hidden costs.

The other laws listed address related but different issues: one protects against housing discrimination; another prohibits discrimination in credit decisions; and another targets settlement practices and closing costs. While important, they don’t introduce the first broad framework of clear, standardized loan disclosures designed to shield consumers from predatory lending practices, which is why this law is the best answer.