Certified Medical Assistant Practice Exam

Which law requires full disclosure of additional charges that may apply to a bill to protect consumers?

1. Health Insurance Portability and Accountability Act (HIPAA)

2. Fair Credit Reporting Act (FCRA)

3. Truth-in-Lending Act

4. Occupational Safety and Health Act (OSHA)

The correct answer is: Truth-in-Lending Act

The Truth-in-Lending Act is designed to promote informed consumer decision-making by requiring clear and concise disclosure of credit terms, including additional charges that may apply to the cost of a product or service. This law ensures that consumers receive consistent and comprehensive information about the terms of their loans, enabling them to understand the true cost of credit and to make comparisons between different credit offerings. This legislation aims to prevent deceptive lending practices by mandating that lenders provide essential details upfront, such as interest rates, terms of repayment, and any additional fees that could affect the total amount owed. By enforcing these disclosure requirements, the Truth-in-Lending Act empowers consumers to make better financial choices and promotes transparency in the credit market.