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.

Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.