Regulation Z

Regulation Z is a rule set by the Federal Reserve that requires lenders to clearly disclose the terms and costs of credit whenever they offer loans, credit cards, or financing. Its purpose is to promote transparency so consumers can understand the true cost of borrowing, including interest rates, fees, and repayment terms. This helps individuals make informed financial decisions and compare different loan options. Essentially, Regulation Z ensures lenders provide honest, straightforward information about the costs involved in borrowing money, protecting consumers from hidden or misleading practices.