Truth in Lending (Regulation Z)

Creditors must disclose key terms and costs of lending arrangements to consumers. For closed-end credit (such as mortgages and auto loans), disclosures must include the finance charge, annual percentage rate (APR), amount financed, total of payments, and payment schedule.

The regulation also covers open-end credit (credit cards), requiring periodic statements, notice of changes in terms, and limitations on penalty fees. Special rules apply to mortgage transactions including ability-to-repay requirements and qualified mortgage standards.