Which term is defined as having the same meaning as the federal Truth in Lending Act?

The term that is defined as having the same meaning as the federal Truth in Lending Act is closely associated with both the Annual Percentage Rate (APR) and the Finance Charge. The Truth in Lending Act (TILA) was established to promote informed use of consumer credit by requiring disclosures about its terms and cost.

The Annual Percentage Rate is significant because it represents the total yearly cost of borrowing as a percentage, including interest and applicable fees. The Finance Charge, on the other hand, refers to the total cost of borrowing expressed in dollar terms, including interest, loan fees, and other charges. Both of these terms are key components of the disclosures mandated by TILA, which aims to ensure that consumers are adequately informed about the costs associated with borrowing.

Thus, referencing both the Annual Percentage Rate and the Finance Charge accurately captures the essence of the Truth in Lending Act, as these terms are integral to the transparency and understanding of credit costs that TILA seeks to ensure for borrowers.