Which of the following were the goals of TILA and the CARD Act? Select the two correct answers.(1 point) Responses limit the profit of credit card companies limit the profit of credit card companies protect lenders from the borrowers defaulting or refusing to pay protect lenders from the borrowers defaulting or refusing to pay protect borrowers from predatory acts by lenders protect borrowers from predatory acts by lenders redistribute the profit of credit card companies back to their customers redistribute the profit of credit card companies back to their customers clarify the language used in applications
The correct answers are:
- Protect borrowers from predatory acts by lenders
- Clarify the language used in applications
The two correct answers are:
1. Protect borrowers from predatory acts by lenders
2. Clarify the language used in applications
To determine the goals of the Truth in Lending Act (TILA) and the CARD Act, we need to understand the purpose of these laws.
1. TILA's goals: TILA is designed to protect consumers when they engage in credit transactions by requiring lenders to disclose clear and accurate information about the terms and costs of credit so that consumers can make informed decisions. Its key objectives include:
- Protecting borrowers from predatory acts by lenders.
- Clarifying the language used in credit applications.
2. CARD Act's goals: The Credit Card Accountability Responsibility and Disclosure Act (CARD Act) is intended to protect credit card users from unfair practices by credit card companies and to ensure transparency in credit card terms. Its main objectives include:
- Limiting the profit of credit card companies.
- Protecting borrowers from predatory acts by lenders.
- Redistributing the profit of credit card companies back to their customers.
Based on this information, the two correct answers regarding the goals of TILA and the CARD Act are:
- Protect borrowers from predatory acts by lenders.
- Clarify the language used in credit applications.
These laws aim to empower consumers, regulate the credit industry, and ensure fair and transparent practices.