What is the primary purpose of the Consumer Credit Protection Act?

The primary purpose of the Consumer Credit Protection Act is to protect consumers in lending transactions. This legislation was enacted to promote informed use of credit and ensure that consumers are aware of their rights when entering into credit agreements. It encompasses various provisions, such as requiring lenders to disclose the terms and costs associated with loans and credit, making sure that consumers have clear information before they commit to borrowing.

The act also aims to safeguard consumers from unfair or deceptive practices by creditors. By establishing clear guidelines and requirements for lenders, the law helps to ensure that consumers can make better-informed decisions regarding their borrowing options and that they are treated fairly throughout the lending process.

The other choices do touch on aspects related to the financial industry but do not capture the overarching intent of the Consumer Credit Protection Act. For instance, while limiting credit card fees could be a component of consumer protection, it is not the central focus of the act. Setting interest rate ceilings and regulating business loans also pertain to credit but are not the primary objectives of this specific legislation.