Regulation Z

Federal Reserve regulation implementing the consumer credit protections in the Truth in Lending Act of 1968, The major areas of the regulation require lenders to:

-give borrowers written disclosure on essential credit terms including the cost of credit expressed as a finance charge and an annual percentage rate.

-respond to consumer complaints of billing errors on certain credit accounts within a specified period.

-identify credit transactions on periodic statements of opened credit accounts.

-provide certain rights regarding credit cards.

-inform customers of the Right of Rescission in certain mortgage-related loans within a specified period.

-comply with special requirements when advertising credit.

A federal regulation requiring Creditors to provide full disclosure of the terms of a loan. Compliance is compulsory for anyone who arranges Credit for more than 5 sales of Residential real estate in a year. Terms of the loan must be disclosed. The Interest Rate must be stated as an Annual Percentage Rate (APR).

See also Rescind, Rescission.