True or False: The Truth in Lending Act dictates to financial institutions how much interest they may charge a consumer for a loan.

The Truth in Lending Act (TILA) does not set limits on the amount of interest that financial institutions can charge consumers for loans. Instead, the primary purpose of TILA is to promote informed use of consumer credit by requiring disclosures about its terms and cost. This means financial institutions must provide clear and concise information regarding interest rates, fees, and other related costs associated with loans. It ensures consumers understand the credit terms they are agreeing to, but it does not impose any ceilings or floors on interest rates. Therefore, the statement suggesting that TILA dictates how much interest can be charged is incorrect.