Asked by vidya sagar on Jul 03, 2024
Verified
Which act states that a creditor must make a loan to a natural person and not an entity?
A) The Truth-in-Lending Act
B) Natural Loan's Act
C) People Only Loan Act
D) Non-Commercial Lending Act
E) Loan Guidance Act
Truth-in-Lending Act
A national regulation aiming to encourage knowledgeable utilization of consumer credit through mandatory disclosures regarding its conditions and expenses.
Natural Person
A human being, as opposed to a legal entity such as a corporation, recognized as a legal subject with rights and obligations.
- Comprehend the regulations designed to protect consumers dealing with credit and finance, including specifics of the Truth-in-Lending Act and the Fair Debt Collection Practices Act.
Verified Answer
EB
Eduardo BelloJul 05, 2024
Final Answer :
A
Explanation :
The Truth-in-Lending Act (TILA) requires creditors to provide consumers with clear and accurate disclosures about the terms of credit, including costs and rights. While TILA primarily applies to loans made to natural persons for personal, family, or household purposes, rather than to entities or for business purposes, the question's phrasing might be slightly misleading. TILA doesn't explicitly state that a creditor "must make a loan to a natural person and not an entity," but its protections are geared towards consumer loans rather than business loans.
Learning Objectives
- Comprehend the regulations designed to protect consumers dealing with credit and finance, including specifics of the Truth-in-Lending Act and the Fair Debt Collection Practices Act.