Which federal act protects consumers from predatory lending practices?

The Home Ownership and Equity Protection Act (HOEPA) is the correct choice because it specifically addresses predatory lending practices, particularly in relation to high-cost home loans. Implemented as part of the Truth in Lending Act, HOEPA provides substantial protections to consumers by requiring lenders to disclose additional information about the terms and costs of loans that fall into the higher-cost category. This includes ensuring that borrowers are informed about the risks associated with such loans, which may carry higher interest rates and fees, thereby helping to prevent scenarios where consumers feel pressured or misled into accepting unfavorable loan terms.

The other acts, while important in consumer protection, focus on different aspects of housing and lending. The Fair Housing Act primarily addresses discrimination in housing-related activities, the Equal Credit Opportunity Act prohibits discrimination in lending based on certain characteristics, and the Real Estate Settlement Procedures Act (RESPA) relates to the disclosure of settlement costs and aims to eliminate kickbacks and referral fees in real estate transactions. Thus, these other acts do not directly target the predatory practices characteristic of high-cost loans as HOEPA does.