Reg Z is the regulation governing which law?

Reg Z is the regulation governing which law?

• A. ECOA
• B. Truth in Lending Act
• C. Fair Housing Act
• D. Gramm-Leach-Bliley Act

Answer: (B)

Reg Z is the regulation that implements the Truth in Lending Act. This regulation requires lenders to clearly disclose the true cost of consumer credit so borrowers can compare loan terms. It governs key disclosures like the annual percentage rate (APR), finance charges, the amount financed, the total of payments, and the payment schedule. It also sets advertising rules for credit terms and provides certain protections, such as the right of rescission for loans secured by a borrower’s home. The other options relate to different areas: equal lending opportunity is addressed under the Equal Credit Opportunity Act (Reg B), housing discrimination under the Fair Housing Act, and privacy rules under the Gramm-Leach-Bliley Act (Reg P/S-P).

Reg Z is the regulation that implements the Truth in Lending Act. This regulation requires lenders to clearly disclose the true cost of consumer credit so borrowers can compare loan terms. It governs key disclosures like the annual percentage rate (APR), finance charges, the amount financed, the total of payments, and the payment schedule. It also sets advertising rules for credit terms and provides certain protections, such as the right of rescission for loans secured by a borrower’s home.

The other options relate to different areas: equal lending opportunity is addressed under the Equal Credit Opportunity Act (Reg B), housing discrimination under the Fair Housing Act, and privacy rules under the Gramm-Leach-Bliley Act (Reg P/S-P).